Saudi Arabia has matured to a more decisive action against USA

Saudi Arabia, which is determined for the implementation plan for the recovery of oil prices, ready to start more active in the fight against shale companies in the US that hinder this process, increasing their production. 15.May.17 10:55 AM By Christina Orlina Photo Toinnov.com    408

At the present time, Saudi Arabia realizes that its main competitor outside of the OPEC — Russia — generally fulfills its promise and reduces oil production, though increasing the exports of "black gold". However, the recovery in prices for "black gold" goes at a much slower pace expected by all parties to the agreement to reduce oil production. The US oil companies, take advantage of the situation on the world oil market, where oil prices rose to a relatively acceptable level (approximately $ 50 per barrel), began actively to reopen the previously "frozen" wells. First, Saudi Arabia wanted to hold a kind of fast and a one-time intervention: to reduce oil production for a few months, to accelerate the recovery of the market, but this strategy did not seem to work since suddenly perk of US shale. According to forecasts, by the end of may, oil production in the US will be close to 9.5 million barrels a day. In a period of low oil prices, the us shale companies have managed to establish a production and reduce costs — and now they are quite able to work successfully with the price of oil at $ 50 per barrel, making a profit. If in 2013 the cost of a barrel of shale oil averaged $ 80 per barrel, today the price dropped to about $ 35.

---

Back to the list

Related Information: