E&Ps and OilService companies are watching closely to see where oil ends up after a week-long price slide that has dragged down shares of oil and gas companies along with it. With OPEC output rising in recent months and both U.S. shale oil and Russian production on track to set records, prices for the commodity traded Thursday at $84.27 for November WTI contracts, off $6 from Monday’s $90.34—a 7% slide. Both WTI and Brent have declined more than 20% since June. The spread between Brent crude and WTI narrowed as well. Brent traded late Thursday at $88.67.
With Saudi Arabia’s recent oil price cut, some are asking if the Saudis are positioning a price war against U.S. shale developers.
Ben van Beurden, CEO of Royal Dutch Shell (ticker: RDS), looks at the effect and future of commodity prices in this video interview.
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