Oil: Growth in US shale output is slowing – ANZ

Sandeep Kanihama FXStreet Contributor

According to ANZ analysts, oil market has quickly discounted the impact of the recent attack on oil facilities in Saudi Arabia, returning its focus to the weakening economic backdrop.

Key Quotes

“We remain convinced that the risk of further disruptions is high.”

“However, an acceleration in the slowdown in US shale oil supply will likely temper the impact of any decline in oil demand in 2020. The rig count has fallen and shale oil output has dropped from 150kbbls to only 53kbbls.”

“Overall, we expect the crude oil market to be relatively balanced in 2020, with growth in US shale oil falling to only 250kb/d.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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