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No Oil Production Cuts for U.S., OPEC
Oil production shows no sign of slowing in the U.S. or Middle East, all but assuring a global glut and low energy prices well into next year, analysts say.
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Oil production shows no sign of slowing in the U.S. or Middle East, all but assuring a global glut and low energy prices well into next year, analysts say.
On Friday the Organization of the Petroleum Exporting Countries ended a contentious meeting with no agreement to reduce its near-record output. In the U.S., production also is steady, as output from new deep water wells in the Gulf of Mexico is offsetting smaller-than-expected reductions in shale operations elsewhere.
As a result, oil future closed below $40 per barrel on Friday for the second time in three days.
Analysts are divided about whether U.S. operators will pump more or less oil in 2016. But many say the energy industry sees more economic sense in at least maintaining production from new capacity built just ahead of the current glut.
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