US FRACKERS ARE THE SKUNKS AT THE PUTIN-OPEC GARDEN PARTY
The OPEC cartel is to forge a permanent alliance with a Russia-led bloc of producers by the end of the year, aiming to regain control of the world crude market with a super-combine of unprecedented scale and reach.
Suhail al-Mazroui, OPEC’s president, said the two groups are working on a “framework partnership” that would tie them together closely in perpetuity after their current deal to cap production jointly expires later this year.
The new super-cartel would once have been a radical development for the oil industry. Today it’s an awkward and belated response to the threat of America’s "short-cycle" shale frackers, who can respond with lightning speed and are preventing the normal cycle of full recovery from taking hold.
The fracking industry seized on the "ROPEC" cuts to ramp up US output by over 250,000 b/d a month over the winter, with a further 1.3m b/d expected this year. This places Mr. Putin and Mr. al-Mazroui in a painful Catch 22.











