The gradual decline in oil prices in the coming years could\nprompt Saudi Arabia and OPEC to regain some market share from the US, according\nto the head of oil and gas research in Europe, the Middle East and Africa\n(EMEA) at J.P. Morgan.<\/p>\n\n\n\n
Saudi Arabia and OPEC are \u201cthere to support oil while they\nare effectively pregnant with all this economic growth and capital they have\ngot to deliver. But, having said that, what we are saying to the bulls is:\nDon\u2019t get used to it,\u201d said J.P. Morgan\u2019s Christyan Malek.<\/p>\n\n\n\n
Earlier this week, OPEC and 10 other allied producer\npartners agreed to keep 1.2 million bpd on the market for another nine months.\nThe energy alliance, sometimes referred to as OPEC +, has been cutting\nproduction since 2017 as part of a continuing effort to boost crude oil prices.<\/p>\n\n\n\n
The Middle East-controlled group managed to keep crude oil\nfutures near $60 a barrel, however five years after oil prices kept trading\nabove $100. But the long period of production cut has seen its share of the\nworld oil market sinking to its lowest level in nearly three decades.<\/p>\n\n\n\n
At the same time, the shale industry in the United States\nhas expanded at such a rapid rate that it threatens to overcome OPEC-led\nefforts to ease demand fears, flooding the world oil market with supply. Asked\nif he thought Saudi Arabia could change this and manage to outlast the oil\nshale industry in the United States, Malek said: “I think, at the moment,\nwith OPEC and Saudi focusing on fiscal (and) economic policy, they are\nabsolutely two feet in the value camp.” \u201c\u2026 I mean three of four years ago,\nwho would have thought that they would be happy with $60 to $70?\u201d said Malek.\n\u201cIn a few years\u2019 time I expect $50 to be an okay oil price, at which point that\ncould see Saudi and OPEC reclaim that market share and then it becomes more\ncompetitive,”<\/p>\n\n\n\n
Brent crude traded at $63.80 on Thursday morning, remaining\nunchanged from the previous session. Meanwhile, West Texas Intermediate (WTI)\nsettled at $57.13, down nearly 0.4%.<\/p>\n\n\n\n
Saudi Energy Minister Khalid al-Falih told reporters in\nVienna earlier this week that shale will go the same way as every basin in\nhistory. The price will \u201cpeak, plateau and then decline,” he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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