Weighing the fate of US shale oil supply

摘要

Aside from a brief blip, oil prices have remained stubbornly below $50/b in recent weeks despite fresh concern over global demand and rising geopolitical tensions. On the supply side, the market’s gaze has gravitated to that most closely watched of oil market variables—the response of US shale output to weaker oil prices. Optimism over the “resilience” of US shale due to falling costs and rising well efficiency earlier this year gave way to scare stories in August as shale producers faced losing credit lines under scheduled October loan reviews.