OPEC Says Shale Boom is Over

The latest monthly oil-market report by the 12-member OPEC oil cartel says that U.S. oil producers are finally beginning to feel the squeeze of lower oil prices. “In North America, there are signs that U.S. production has started to respond to reduced investment and activity.” OPEC has reduced its U.S. production forecast in 2015 by 100,000 barrels per day to 13.75 million. The increase production from U.S. shale plays in recent years caused OPEC to exert price controls and send oil prices tumbling 60% from highs in early 2014. The report notes that, “Despite the expected fall in U.S. production, OPEC says America's oil supply will be higher than any other non-OPEC country's output in 2015. But for now, it seems OPEC's tactic to force smaller players out of the market is working.”