Citi: U.S. Shale Beats OPEC At $40 Oil

Citigroup has said that U.S. shale will prevail over OPEC
because of its higher resilience to low prices and OPEC’s losing
strategy of cutting output and losing revenues and market share.
Citigroup’s head of commodity research, Ed Morse, told Bloomberg in
an interview that OPEC and its partners cannot sustain their
current strategy over a longer term, while shale producers have
adapted to low prices and can break even at WTI as low as US$40 a
barrel. “In the end, the markets are going to win, and it’s going
to be shale.…

Citigroup has said that U.S. shale will prevail over OPEC
because of its higher resilience to low prices and OPEC’s losing
strategy of cutting output and losing revenues and market share.
Citigroup’s head of commodity research, Ed Morse, told Bloomberg in
an interview that OPEC and its partners cannot sustain their
current strategy over a longer term, while shale producers have
adapted to low prices and can break even at WTI as low as US$40 a
barrel. “In the end, the markets are going to win, and it’s going
to be shale.…