OPEC Poses Threat to Itself
The pain starts to drive some members crazy. Patching over glaring shortfalls in cash flow does not really works anymore and clinging on by their teeth that there will be a fast coming back of strong growth does not look like a smart policy anymore. Besides, shale is already as bad as it can possibly be and learns to live with those prices. So, when OPEC+ producers still lose money, shale survives. The longer this goes on – the worse it’s going to be for OPEC+. If Trump wins tonight and cranks up the US economy, shale will be in a sweet spot. Growth will come back – the question is who survives until it does.
