By Bloomberg ( China Daily )
US shale is getting in the way of a New Year's resolution by OPEC to cut production and boostthe market.
Producers and merchants increased their bets on lower West Texas Intermediate crude prices tothe highest level since 2007 as futures held above $50 a barrel. The increase in hedging againsta price drop signals a comeback in US shale output, just as OPEC members and otherproducers seek to reduce supply.
In November, the Organization of Petroleum Exporting Countries reached an agreement to cutproduction by 1.2 million barrels a day for six months starting in January, and were joined by 11non-OPEC nations in an effort to reduce a global glut. Last week, the Energy InformationAdministration raised its forecast for next year's US crude production. A Barclays survey showedNorth American oil and gas explorers will spend 27 percent more this year.