Is U.S. the Oil Price Culprit?

OPEC gets all the blame for the low price of oil, however, U.S. continued high production has not helped. OPEC’s production has stayed nearly level for the past decade, while U.S. production has doubled. OPEC wants to squeeze U.S. shale oil production and Russian production back to earlier levels, so that they can maintain their market share. Some investors believe that U.S. producers are the cause of the oil glut. In the 4th quarter of 2014 the U.S. Energy Information Administration noted that U.S. supply overbalanced demand by 1.76 million barrels per day. In the 3rd quarter of 2015 U.S. oversupply reached 1.8 million bpd. Lower oil prices have actually increased demand, but not enough to balance the market. “OPEC isn’t fixing the oil market, …. It’s just acting in its own long-term self-interest. Isn’t that what you would do?”