Over the weekend, Saudi Arabia’s state-owned oil company decided to cut oil prices by ramping up production. This seems to be part of a plan to steal market share from Russia after the two countries failed to reach an agreement on oil prices. As a result of this new price war, U.S. crude oil prices fell over 20% to around $30/barrel. This also impacts U.S. shale producers. Aided by new technology, the breakeven cost for drilling shale has been coming down, but U.S. shale producers generally can’t make money with oil prices under $50 a barrel.
For more insights, download our full commentary.
Commentaries are published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
Want more insights like this, sent straight to your inbox?
Subscribe to email updates from Cetera and be well informed about what’s happening within the market and the financial services industry overall.