Bleak outlook for US shale industry amid global drop in energy demand

DESPITE the best efforts of the Trump administration to persuade Saudi Arabia to cut crude production and prop up global oil prices to a level that ensures the viability of the US shale oil industry, the outlook for shale is uncertain.

The benchmark West Texas Intermediate crude remains within a US$2 range, with support at US$40 and resistance at US$42. Consequently, US shale producers are now expected to post the industry's worst second-quarter resu…

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