Having seen a clickbait article on ‘the case for $100 oil, we’re pretty sure it’s not the case for $100 that needs to be argued. It’s just a subjective opinion based on projected points supported by a manipulated market.
The first cracks in the OPEC cut agreement are showing in public after Russia hinted it may quit the group to fight a proxy production war with the U.S. for market share.
This is all based around a higher production cost for shale oil compared to traditional oil methods. The theory then is to crush U.S. production and draw back with a much larger market share to offset the fall in prices.
Pretty sure this was tried by the whole of OPEC a few years ago, and that went really well for them didn’t it?
As we run towards the long Easter holidays volumes have been fairly low and trading has been pretty range bound. $70 oil works for many of the producers and they will aim to keep it above this level for as long as they without having to do anything major. For the moment we are flat with a sprinkle of bull interest.