OPEC faces a new balancing act in 2017 - BBG

Bloomberg carries a story this Tuesday on the oil market outlook, as the OPEC faces a new balancing act in 2017 - boosting prices without igniting shale.

The Organization of Petroleum Exporting Countries (OPEC) has a new plan for 2017: Trim output, boost prices and better exploit the world’s most significant natural resource.

According to the median of 24 analyst estimates compiled by Bloomberg, with the cuts, prices could average $58 a barrel.

Ed Morse, head of commodities research at Citigroup, noted, “OPEC is aiming for a much-needed lift to the oil price, given the stretched fiscal balance sheets of every producing nation. The question really should be what happens afterwards -- how fast is U.S. shale going to come back?”