Rising US crude oil production could benefit tanker market

The higher oil price could entice US shale oil producers to increase investments in new wells, in turn leading to increased oil exports and additional support to the tanker market, writes Gibson.

Photo: AET

Further upward pressure on oil prices is once again testing shale producers' financial discipline, as they may be tempted to invest in new oil wells rather than reduce debt and pay out dividends, assesses shipbroker Gibson in its weekly tanker report.

US production of crude oil is expected to go below 2020 levels this year, in part due to Hurricane Ida, which limited production for a period, and in part due to a prioritization of financial discipline over new investments among US shale producers.

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