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US shale pumping will see oil prices slide back to $50, JP Morgan analyst predicts

March 29, 2018

Efficiency improvements from the world’s largest oil-producing firms and countries, alongside the rise of U.S. shale, will see prices slide back to near $50 a barrel, according to research at investment bank J.P. Morgan.

Christian Malek, the head of EMEA oil and gas equity research at J.P. Morgan, said that the “breakeven” price — where they just about manage to cover their costs — for OPEC nations and major energy companies would drift back towards $50 a barrel by the end of next year. He explained this current price was in the mid-$60 a barrel price range, including for nations like Saudi Arabia, Iraq and Kuwait.

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