Related: Falling Oil Rig Count Help Oil ETFs Rebound
Meanwhile, advances in U.S. shale oil production technologies are contributing the to supply surplus and weighing on any oil price gains. It has become much cheaper for the upstart U.S. shale producers to extract oil out of the ground, but the growth rate of U.S. oil product has also recently slowed.
“According to Goldman Sachs, Big Oil is now repositioning itself for better profitability and cash generation in the oil-at-US$50 world than they were in the US$100-oil price environment, due to simplification, standardization, and deflation,” according to OilPrice.com.
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