The suspension of the OPEC + agreement is a joint operation between Russia and Saudi Arabia to push US shale companies out of the oil market. Vice-President of the Experimental Creative Center International Social Foundation (ECC) Yury Byaly made this conjecture in a comment to a Rossa Primavera News Agency correspondent on March 11.
The expert noted that in recent years the United States, which has crushed the oil industries of Venezuela and Iran with sanctions, began to occupy the main world markets. At the same time, the US began to displace Russian and Saudi companies from the market. Byaly stressed that the US did not participate in the OPEC+ deal, and did not intend to limit its oil export.
The article notes that the price to produce shale oil ranges from $45 to $65 per barrel in the United States. And even before the collapse of prices, production in general was unprofitable, which is why US shale producers have accumulated a credit debt of $300 billion. Oil production in the United States will begin to stagnate or even decline at an oil price of $35-40 per barrel in 2020. The expert emphasizes, that the price of $35-40 per barrel will push the majority of US shale producers into financial ruin over 2-3 years.
Source: Rossa Primavera News Agency