Oil stuck in a rut amid OPEC-Shale Tug of War - IB Times
It is uncanny for oil prices to trade range bound for so long… especially after OPEC and non-OPEC output cut deal. Gaurav Sharma, Business Editor, International Business Times UK joined Tip TV's Zak Mir on today’s Finance show to explain the conundrum.
Sharma details the tug of war between OPEC and Shale that is keeping the prices range bound. On one hand, we have OPEC & non-OPEC output cut deal that is supporting prices, however, on the other hand, increasing US oil output is playing the spoil sport.
Still, markets are betting on an upside break. Sharma takes note of the bullish positioning in the oil benchmarks. Net long positions in WTI hit record high last week. The situation is no different across the pond.
As per Sharma, a serious bullish event for oil markets would be another six month extension of the OPEC deal. “$50 is the price level that keeps everyone happy”, says Sharma while concluding the segment.
Listen to the full segment to know the potential winner of the ongoing tug of war.
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