Oil: The US oil industry has still to gear far looming turmoil despite an all-time high production

In December 2015, the West Texas Intermediate (WTI) oil price registered USD36.78 per barrel in the U.S. on a monthly average. On a yearly average, it amounted to USD48.76 per barrel in 2015 compared with USD101.57 per barrel in June 2014. We expect the WTI oil price will be lower in 2016 than in 2015, at USD37 per barrel on a yearly average. This stems from U.S. crude oil production leveling off at an all-time high of 9 million barrels a day and also because of very high levels of U.S. oil inventories.

The shale revolution has significantly boosted U.S. oil production since 2012. As shown in chart below, the 9.3 million barrels per day oil production on a yearly average at the end of 2015 in the U.S. was almost double the level in 2010. This situation keeps fueling an already very high level of U.S. crude oil stocks, with almost 500 million of barrels as of January 2016.

Oil: The US oil industry has still to gear far looming turmoil despite an all-time high production - Report

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