Oil seen staying at $50-$60 as U.S. shale offsets OPEC action

|By:, SA News Editor

The consensus among execs, traders and officials at the annual Oil & Money conference in London: Get used to $50-$60/bbl oil prices, as falling costs in U.S. shale fields counteract OPEC’s renewed commitment to supply management.

Any sustained oil price rally will be held back by the return of U.S. shale oil production from fields previously rendered unprofitable by the two-year slump, says IEA head Fatih Birol.

Investments are back... but it’s only going to be the very best,” BP's Bob Dudley says, adding that his company has taken final investment decisions on a handful of projects this year and is expected to approve more in 2017.

ConocoPhillips (NYSE:COP) CEO Ryan Lance emphasizes that some U.S. shale fields have dramatically reduced their breakeven levels, with new wells in parts of the Permian, Bakken and Eagle Ford areas now profitable at $40/bbl.

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