The Brent oil price managed a modest bounce last night to $47.95 on not much more than improved wider sentiment. The WSJ sums up the state of shale:
The U.S. Energy Information Administration on Aug. 31 said domestic production has been lower all year than previously reported. Current data show that output fell from a peak of 9.6 million barrels a day in April to 9.3 million barrels a day in June.
…“That’s a lot, lot bigger [drop] than anybody was predicting,” said Shawn Reynolds,portfolio manager at Van Eck Global, which manages $31.1 billion. Mr. Reynolds added exposure to U.S. oil producers this summer.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
