The oil price fell again last night with Brent down another 2.5% to $56.09 as I write. The culprit was a huge surge in US stockpiles, much more than expected, which has that nations swimming in the black stuff:
The culprit is surging production:
This is entirely to be expected. As the margin and capital squeeze hits shale oil producers, they will respond with mass cost cuts and a charge towards higher volumes to make up for lost prices. It will run until the combined falling rig count and rapid well depletion rate combine to pull back the production increases, which ought to be around May.
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