Oil prices pause after OPEC-inspired rally; Brent backs away from $52 - MarketWatch
“While we acknowledge that OPEC’s track record of delivering on production cuts has historically been poor, on a net basis we expect this to tighten crude markets,” said Scott Darling, the head of Asia-Pacific oil and gas research at J.P. Morgan.
The deal is expected to accelerate the rebalance of supply and demand in the market, which will likely shift to a 500,000-barrel deficit in the first half of next year, Bernstein Research said. It added that the deficit could rise to more than 1 million barrels a day by the second half of next year.
Higher prices, however, are likely to cause more U.S. shale producers to increase production.
The latest production data from the U.S. Energy Information Administration showed U.S. production increased by 9,000 barrels a day to 8.7 million barrels for the week ended Nov. 25.
“There is a real risk that higher prices could reactivate more dormant shale oil,” said ANZ Research, which expects international oil prices to hit strong resistance at around $60 a barrel in early 2017."
there are around 9000 wells in US waiting to be fracked for production and currently shut in.
$75 in near term is a pipe dream imo...but happy smoking in the meantime.
Smart money was made from Jan - June this year off $30.
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