8th May 2017
Rising US Shale Takes its Toll on Oil
This week the late reporting of the drastic fall in the oil price, caused for the most part by a jump in US Shale production, proved to be the most interesting development.
Despite production cuts agreed by OPEC, US shale production has steadily increased, overwhelming any action to prop up the oil price. This has great relevance to investors, as the near doubling in oil prices since the low point of around $28 at the start of last year is the primary driver of the inflation we’ve seen creeping up across the globe. If oil is on its way down again, expect these inflationary pressures to reduce.
Elsewhere it looks like curtains for fledgling comedy The Paul Nuttall show. The slapstick about an incompetent UKIP party leader received dismal ratings in this week’s local elections, and looks set to be cancelled after the series finale next month.
Please follow the link below to read this weeks Market Commentary.