Oil: Lower for longer

US unconventional production means it could be a long time before the oil price recovers.

Summary: Despite an uptick in the oil price this week, the current downturn is different as there is no guarantee US unconventional producers will be quickly forced out. It appears that OPEC has resorted to flooding the market with cheap oil without knowing what will happen to US shale output. Meanwhile, there is financial pressure on non-OPEC members such as Russia, which must keep producing to balance its budget.

Key take-out: US shale production will force OPEC – and investors in ASX-listed oil stocks – to live with a lower oil price for longer. It could be a very long time before the oil price returns to $US100 a barrel.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles