The Short Position

Oil price rally unlikely to continue

SAUDI Arabia is claiming victory for its strategy of fending off rivals such as US shale players by producing more oil despite the sluggish price for the commodity. Saudi’s production had risen to a high of 10.3 million barrels in April and shows no signs of reducing its output.

The result is Brent crude prices dropping to as low as US$45 per barrel and shale producers significantly reducing the number of rigs.