Oil will continue its upward rise…Why?
- Fracked wells are not producing at the level originally projected. As they age, well yield is declining 15% faster than forecast
- Because of the above, frackers are having trouble raising cash or borrowing money….meaning fewer wells will be drilled in the next years
- OPEC, and allied countries like Russia, are holding the line on output
- Iran is a wild card. Backed into a corner by the US and other sanctions, it could lash out at tankers or oil infrastructure in the Mid-East
Plan on diesel prices rising in lockstep.