OPEC’s decision to leave production quota unchanged triggered massive selloff of the energy complex. Instead of defending price by trimming output, the cartel decided to compete for market share with the thriving US shale production. The likely result is deteriorating demand/supply imbalance. Crude benchmarks slumped with double-digit loss last week.
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Weekly Fundamentals – Price War between OPEC and US Shale Set to Depress Oil Prices Further