Opec and its partners have seen the rally in oil prices evaporate as the US inventory glut becomes impossible to ignore. West Texas Intermediate closed at its lowest price since November 29, the day before Opec approved the first supply cuts in eight years. Harold Hamm, the US shale oil billionaire, warned this week that the industry could "kill" the market if it embarked on another spending binge. Oil had fluctuated above US$50 a barrel since the Organisation of Petroleum Exporting Countries and other countries started trimming supply to reduce a global glut. "Shale is coming back with US$50 oil and there's uncertainty about whether Opec and its partners are going to roll over the production agreement."

Source: New Zealand Herald March 10, 2017 15:56 UTC