Crude Oil Below $20, Trump Needs To Save U.S. Shale Oil Industry
It was another brutal day for oil prices; Crude Oil crashed another 10% yesterday. In fact, since the oil production cut this week—which was supposed to help oil prices—the selling pressure has been building. The OPEC+ has done its job, and it would be foolish to expect any more production cuts from Saudi Arabia or Russia. Remember, initially, Russia wasn’t ready for the production cut, and then the oil war was extended by Saudi Arabia. Eventually, we saw an agreement forged, and the OPEC+ alliance settled for a production cut just shy of ten million barrels a day.
Crude oil is trading at $19.45 today and at this level, there is a significant threat to the U.S. shale oil industry. So, what do we need?
- Organic production cut from the U.S. shale oil industry
- Increase in Strategic Petroleum Reserve (SPR)
- Bargain hunters stepping in
- Global lockdown to ease off
In the absence of the above, Crude Oil prices are likely to fall further, possibly reaching the $16 mark.