Another Bloomberg article on oil--
Oil Tumbles Below $65 as OPEC Seen Failing to Slow Shale
By Ben Sharples Nov 30, 2014 9:56 PM ET
bloomberg.com
excerpts [more at the link; my bolding below--I thought that the break even point was much higher than $42 in the Bakken]:
West Texas Intermediate fell below $65 a barrel to the lowest intraday level since July 2009 amid speculation that prices need to drop further before OPEC’s decision to maintain production slows U.S. shale supply.
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Only about 4 percent of U.S. shale output needs $80 a barrel or more to be profitable, according to the International Energy Agency. Most production in the Bakken formation, one of the main drivers of shale oil output, remains commercially viable at or below $42, the Paris-based agency estimates. It expects U.S. supply to rise by almost 1 million barrels a day next year, with increasing flows to international markets.
OPEC, which supplies about 40 percent of the world’s oil, exceeded its official target for a sixth straight month in November, even after reducing output. The group pumped 30.56 million barrels a day, 424,000 barrels a day less than in October, a Bloomberg News survey of oil companies, producers and analysts showed.
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China’s efforts to boost emergency stockpiles may boost its imports by as much as 700,000 barrels a day in 2015, according to Energy Aspects Ltd., a London-based consultant. That’s more than half the global glut forecast by Citigroup Inc.
U.S. production expanded to 9.08 million barrels a day through Nov. 21, the most in weekly records that started in January 1983, data from the Energy Information Administration show. Crude inventories climbed to 383 million, according to the Energy Department’s statistical arm. |
