Oil Output Down 120k Barrels
In international trading, world markets were generally up. The sole exception was the Hang Seng in Hong Kong, which fell by 23 points. Elsewhere in Asia, the Nikkei closed up 181 points. Australia’s ASX ended the day up 15 points. Across Europe, markets were up. The FTSE in London gained 27 points.
US Oil Output Slipping
In a new report today, it was announced that US oil output has plummeted from all-time highs. Just in the period from August to September, output declined by 120,000 barrels. This could spell higher prices at the pump for consumers, and it continues to threaten jobs in the already hard-hit Energy sector. This marks the lowest output by US oil producers in the past 12 months.
The news could be the beginning of the end for the shale oil boom in America. Unless crude prices are raised past the $45 levels that they sit at today, which OPEC is currently preventing, the future of shale oil could be in jeopardy. Jobs are in jeopardy too, and the sector has cut 88,000 of them to date. That’s not likely to change anytime soon.
However this momentary setback doesn’t mean that it’s out of the shale game for good. Prices will rebound, at least to the $70 level eventually, but it might not be soon. When they do, the infrastructure is already in place for a shale oil recovery.
Published on Oct 6, 2015By Aaron Phillips