Here’s my live interview recently on Sky News – the all-news UK channel. It just went up.
Here’s the gist: Years-long high prices brought the US shale revolution and other new higher-cost oil online like offshore of Brazil and Africa. This glut was already dropping prices when the Saudi’s decided in November 2014 that OPEC alone could not cut enough production to reverse the slide. So what to do if Russia and Mexico won’t join an OPEC cut? Defend market share rather than pursue a doomed OPEC fight for higher price. For the foreseeable future, the talk by Venezuela and Russia of possible deals with OPEC for a mutual production cut are just that: talk. So, the Saudi’ will keep fighting to increase their market share by pumping and driving prices lower. — The video just went up on Sky News’ YouTube.channel.