With oil markets flooded, US shale under threat as presidential polls loom
NEW DELHI: With the world’s largest crude oil producer Saudi Aramco planning to boost crude oil supplies to 12.3 million barrels per day in April, and Russia lifting all production curbs, it is the US shale industry that will bear the brunt of it as the country goes to presidential polls in November.
Brent prices on Wednesday were up and the international benchmark crude oil was trading at $37.22 per barrel, far lower than the highs of $147 per barrel in July 2008. The West Texas Intermediate (WTI) was at $33.69 per barrel.
While Saudi Arabia has the lowest cost of production at around $3-5 per barrel, Russia also has a cushion given that its on shore production costs are around $16-18 per barrel.
