(May 26)After a bruising recent fight, now ended, in which Saudi Arabia pumped more and more oil to drive shale producers out of business, US oil shale bankers came to Vienna this week and top OPEC oil officials are planning a trip to Texas.
|The US shale producers are trying to see if they can co-exist or if they will begin another major fight in the near future. US shale oil production has increased supply as OPEC along with a number of OPEC countries have cut production to raise prices. Khalid al-Falih the Saudi Arabian energy minister said that the OPEC and the US shale producers had to learn to coexist. Al-Falih reversed Saudi policy last December pushing through production cuts. On Thursday OPEC and several non-OPEC countries led by Russia agreed to extend the cuts a further nine months to March 2018. This keeps roughly 2 percent of world production off the market.|