Return of US Shale Could Threaten Oil Market Rebalance albawaba.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from albawaba.com Daily Mail and Mail on Sunday newspapers.
DUBAI: The rising oil price could allow for a significant return of US shale to the market in 2022, potentially threatening the rebalancing of the global oil market, according to an analysis by the authoritative Oxford Institute for Energy Studies. In its latest monthly report, Institute Director Bassam Fattouh and analyst Andreas Economou wrote: “As we enter 2022, the US shale response becomes a major source of uncertainty amid an uneven recovery across shale plays and players alike. As in previous cycles, US shale will remain a key factor shaping market outcomes.” With global crude prices heading back toward $70 a barrel, the financial pressures on US shale have eased, and producers have adapted to the constraints of lower demand. “There has been a shift in perceptions about this sector’s behavior. There is a widely held belief that US shale producers have endorsed the principle of capital discipline,” the authors said.