Energy Analysts Warn OPEC Over “shale-tinged” Reality

The Organization of Petroleum-Exporting Countries (OPEC) is facing a “shale-tinged” reality and needs a “wake-up call,” energy analysts have warned.

Analysts in Citi’s commodities research team warn that the shale gas and oil revolution in the U.S. has been ignored for too long by OPEC, the powerful group of 12 global oil producers, and it must agree to cut production when it meets on Thursday or else oil prices “will resume their slide.”

“The reality of the shale revolution in the U.S., long scoffed at from within OPEC as high-cost folly, is now hitting the producer group where it hurts, while oil demand growth has underperformed significantly,” a group of Citi energy analysts said in a report published late on Monday.

CNBC