The current environment of low oil prices is doing exactly what OPEC wants: to squeeze out new high-cost energy producers – oil prices have plunged after a new surge in supply, largely from competitors like U.S. shale oil. According to OPEC sources, non-OPEC supply could amount to 58,2 million barrels per day by 2017, or some 1 million barrels per day lower than previous estimates.
“U.S. crude production slipped 3,000 barrels a day to 9.18 million while refineries boosted their operation rate to 90.3 percent, the most since September, according to the Energy Information Administration. Inventories increased for an eighth week in the seven days ended Nov. 13,” according to Bloomberg.
United States Oil Fund
