Permian Shale Oil Boom Holds Good News and Bad News for OPEC

  • U.S. basin could pump 3.8 million barrels a day in January
  • Infrastructure constraints may shelter OPEC from shale impact
Photographer: Callaghan O'Hare/Bloomberg
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The year has barely begun but it’s already shaping up nicely for OPEC, with crude rebounding sharply after the worst fourth-quarter performance since 2014.

A new production cuts deal with Russia and thawing U.S.-China trade relations have given the market a boost. But for the Organization of Petroleum Exporting Countries, good news often comes hand-in-hand with bad news. For that, look no further than the Permian basin.