Oil is now trending as surprising as this now sounds.
Oil has clawed its way back and it now is less volatile and likely to stay above $60 per barrel for Brent for the for see-able future.
The reason it would seem is that Saudi Arabia the leader in Opec has been able to curtail the amount of oil produced by the cartel more successfully than the former times when there was over production.
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Do remember it is likely to take another decade before alternate so called "clean energy " will start to diminish the use of fossil fuels and even longer to phase them out.
Opec has now also consulted the shale producers and has pointed that its in every producers interest to curtail oil production as a glut leads to not only falling prices,but large losses and companies going under. As we understand it there is no formal signed agreement between them but relies on mutual advantages at the moment.
When the price falls too far there is no advantages for frackers
either as now banks are adverse to lending them extra monies to continue their drilling as there is a social aspect as ground water does in some instances become contaminated.
On the sidelines of course are deep water drills standing idle as this costs the companies billions of US Dollars. So they would not require a higher price to cover their debts.
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