US shale could drive prices after Doha disaster

Source: CNBC

U.S. shale drillers created the world's oil glut, and now they could be the biggest force in ending it.
With the failure of OPEC and other major oil-producing nations to reach a deal to cap output, focus shifts to the U.S. industry's role as a relatively new "swing producer."
"The U.S. has always been a factor. ... It will remain the biggest factor in the rebalancing of the market," said Edward Morse, global head of commodities research at Citigroup. "The U.S. is going to make a disproportional contribution to the market's rebalancing."

Brad Quick | CNBC

Workers wash off hoses that are part of the oil rig owned by Liberty Resources, located just outside of Tioga, ND in the Bakken region of US.

Morse said he expects 1.3 million barrels of non-OPEC production to come offline this year, and 600,000 barrels will be from the United States. The U.S. was the biggest force behind the world's oil glut, with the upstart shale industry helping to boost U.S. production by more than 4 million barrels over five years.
The drop in crude prices is hurting oil-producing nations which have been forced to cut budgets amid the sharp drop in revenues. Oil workers in Kuwait this weekend went on strike due to wage and benefit cuts resulting from the decline in prices.
But nonetheless, OPEC and non-OPEC producers this weekend ended their meeting in Doha, Qatar, with no deal to freeze oil output. Saudi Arabia, OPEC's biggest producer, held firm in its position that Iran would have to be part of the deal. But Iran refused to join a freeze and its representative stayed home.