Monday, October 16, 2017

OPEC, US Oil Markets At Odds

HOUSTON—Differing cost structures between the U.S. and OPEC oil markets have been significant in causing the two to move in opposing paths, according to Ashley Petersen, senior oil market analysts at Stratas Advisors, who spoke with Hart Energy following the recent “The Bull Returns - Where Do Oil Markets Go From Here?” webinar. Petersen added that while U.S. producers are basically producing at will OPEC has stuck to following its supply deal. Despite U.S. producers having fewer export constraints now, she said, exporting crude will eventually be more challenging and expensive for the U.S. than for OPEC. Cost constraints, including the rising costs for fracturing crews, sand, fluids and rigs, are problems the U.S. market faces due to producers primary use of large-scale hydraulic fracturing, Petersen said.
Source: Daily Dose of News

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