Related: U.S. Shale Could Keep Oil ETFs From Breaking Out
“Streible also lays out a bear case, in which production increases in the U.S., as well as in Libya and Nigeria; oil inventories rise as seasonal demand falls off, and the dollar strengthens thanks to expectations of tighter Fed policy,” according to CNBC. “Obviously, crude oil would likely fall below $50 if the full bear case plays out.”
Declining prices in recent years have prompted scores of major oil producers to rein in capital spending. Technological improvements and greater efficiency has helped U.S. shale producers pump out crude oil at lower margins – some say it is now profitable at less than $50 per barrel. Additionally, companies are finding easy access to credit and private-equity firms have bought out struggling companies, which have kept production flowing.
For more news on oil ETFs, visit our oil category.