Oil price war to continue

Next week is the semi-annual meeting of the OPEC oil cartel. Saudi Arabia continues to hope that their strategy of not cutting production will help them compete with U.S. shale firms. American Interest writes,

But U.S. firms haven’t assumed that role as readily as the Saudis would have hoped. Rather, they’ve been hard at work innovating their way to profitability even at $65 per barrel. True, shale growth is expected to slow this year and the next, but it isn’t going away. Combine that with production growth from other non-OPEC producers, and what the cartel is left with is a longer-term price war than it likely bargained for.

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