The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, is higher by nearly 9% over the past month. While many oil market observers focus on the Organization of Petroleum Exporting Countries (OPEC) as a major market force, U.S. shale prices continue to be a potential hurdle for oil as it tries to add to its recent rebound.
Current OPEC compliance with production cut plans remains above their historical average, and it usually takes between two to three quarters for inventories to normalize after the cuts.
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Headline crude prices for the week beginning 12 November 2018 – Brent: US$71/b; WTI: US$60/b
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