American shale makes oil operate in low

Future oil contracts operate with a negative sign on Monday morning (12). The concern with the rapid advancement in the production of the United States and apparent divergences within the Organization of the Petroleum Exporting Countries (OPEC) are responsible for the movement.

The WTI oil for April fell 0.77%, at us $61.56 the barrel, in the New York Mercantile Exchange (Nymex), and Brent for May retreated 0.78%, at us $64.98 the barrel, on ICE.

Different opinions among OPEC members about whether higher prices could stimulate American shale and harm the market have appeared this weekend. Iran wants the cartel to work to keep prices at about us $60 the barrel in order to contain the impetus of US shale producers, said the oil minister Bijan Zanganeh to the Wall Street Journal in a rare interview. Saudi Arabia has downplayed the shale’s ability to damage the market and indicated that a keg at US $70 is acceptable. “The strong resumption of shale begins to draw more attention,” said Bjarne Schieldrop, chief commodity analyst at SEB Markets. According to him, the high in the stocks and voices of OPEC who preferred the cheapest barrel press the contracts.

OPEC and some off-block countries, such as Russia, have carried out an agreement to cut production and support prices. The value of oil has risen by more than 20% in the last six months, but the futures have been pressured by pessimistic forecasts in the short term in the face of strong U.S. production. Investors now seek to anticipate OPEC’s next move. The fear of US production must dominate the June cartel meeting in Vienna. “They’re not going to throw in the towel and say they don’t care about it anymore,” predicted Schieldrop. “But they can say that it is not possible to have these high prices and reduce the cuts,” he evaluated. Source: Trade Journal

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