Brent remained at over US$60 a barrel today, with WTI a bit over US$54 a barrel, but prices have begun to drag because of the prospect of further increases in U.S. shale production. Reuters quoted analysts as saying that the dominant factor driving market sentiment right now is OPEC’s determination to stick to the production cuts it agreed with Russia and 10 other producers last year. One analyst even cautioned that “The fear of oversupply could easily turn to a fear of undersupply if inventories keep declining like they have been and demand continues to grow .” According to oil analyst Vandana Hari of Vanda Insights, however, there are two more factors at play here: the escalation between the central government of Iraq and the Kurdistan autonomous region, and the conviction that although U.S. shale production is recovering, it will not rebound this year, as more E&Ps in the […]