Since the beginning of the year, oil has been stuck in a very tight trading range.
Defying everyone’s expectations, OPEC has successfully gotten members to follow through on production cuts. It has put a floor under oil prices, but the ability of American shale producers to boost production quickly has countered to keep a lid on prices.
It has been painful, but American shale producers have found ways to bring down the cost of exploration and are typically profitable even at the current levels and are showing staying power.
Prices are projected all the way through 2021 that are either flat or slightly lower. While I feel for my friends in Alaska, overall this is great for America. Consumers get a break at the pump and factories have an advantage over their competitors overseas.
Subdued energy costs are a huge tool in process of developing the next economic boom.