While six months may be enough to reduce the combined output of OPEC and its partners by the agreed 1.2 million bpd, if U.S. production continues to grow at the current rate, it would likely offset this cut completely.
Qatar’s decision is unconnected to the feud triggered by Saudi Arabia against the small emirate. However, it is evident that a host of factors has led to this historic decision.
Iran – and Russia – may sit on an astonishing $45 trillion worth in oil and gas reserves. US fracking is largely a myth. Saudi Arabia may have at best 20 years of oil supply left. It’s all about energy – all the time.
The US seems to be extending the proverbial “offer you can’t refuse” to the EU; an elusive, assured delivery of LNG in the (unlikely) event of a cutoff of Russian natural gas to the European Union.