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Mar 10, 2017 11:46


Futures had been trading between about $50 and $55 a barrel this year as the Organization of Petroleum Exporting Countries and 11 other major producers implemented historic supply cuts to help rebalance the market. But shale producers aren’t helping. A drilling revival in regions like the Permian Basin of West Texas and southeastern New Mexico has pushed U.S. crude inventories to record highs, and production topped 9 million barrels a day.

Harold Hamm, the billionaire shale oilman, said at an energy conference in Houston this week that his industry could “kill” the oil market if companies keep increasing spending to boost drilling. Saudi Arabia Oil Minister Khalid Al-Falih said at the conference that it’s premature to discuss an extension to OPEC’s deal. He also said the kingdom wasn’t planning to bear the brunt of balancing the market alone.


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