What incentive have US shale operators got to shut production, or the banks that are financing them to pull the plug? Okay, oil prices are hovering about $30 per barrel now, just above operating costs, but if many of the investment banks are to be believed prices are set to rise rise sharply during 2016. Are optimistic forecasts just serving to prolong the period of droopy prices?
The start of the year has seen investment banks tearing up previous forecasts by ~$20 per barrel as the price of oil has sunk during January. But what all (bar one) forecast is a recovery during 2016 and into 2017.