Why oil prices will stay low, and what that means for markets (VIDEO) Saxo Bank Head of Commodity Strategy Ole Hansen believes we will see production slow in the second half of the year, but questions whether this will see prices rise at all. Even though the number of oil rigs has fallen dramatically since the last quarter, production continues to increase. Hansen comments on the supply overhang, as well as the potential to increase production quickly: DUC is a word we'll hear more and more in coming months - It means drilled but uncompleted. What we're seeing is US shale producers are leaving it in the wells rather than putting it in tanks. So they're left with hundreds of wells that have been drilled, but are waiting to be completed... As soon as the price moves back up to a profitable level, we'll see a lot of oil flooding back into the system. (VIEW LINK)
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