Source: Adobe Stock/kropman.
China posted a message attacking the European Union’s anti-dumping efforts in regard to steel production.
Just as oil hit $40 per barrel, U.S. shale drillers are activating their drilled-but-not-yet-completed wells to increase supply at a margin at which they can make money.
China Decries EU Anti-Dumping Actions
The European Union’s call to step up measures on cheap imports of Chinese steel products will not solve the problems facing the global steel industry but will affect the international trade order, China’s Commerce Ministry said on Monday.
“The whole global steel industry is going through pains due to weak economic recovery and cooling demand… The real reason for the EU’s steel industry’s difficulty is shrinking competitiveness,” the ministry said in a statement on its website.
The European Commission announced plans on March 16 to speed up trade defense cases against cheap imports from China and urged EU member states to end measures that could block higher duties on dumped and subsidized products.
As Oil Prices Increase, U.S. Drillers Unleash Their DUCs
Some U.S. shale oil producers, including Oasis Petroleum and Pioneer Natural Resources Co. are activating drilled but uncompleted wells (DUCs) in a reversal in strategy that threatens to bring more crude to a saturated market and dampen any sustained rebound in prices.
When oil prices started their long slide in mid-2014, many producers kept drilling wells, but halted expensive fracking work that brings them online, waiting for prices to bounce back.
But now, with crude futures hovering near multi-year lows and many doubting recent modest gains that brought oil prices around $40 a barrel, the backlog of DUCs is already shrinking in some areas. The backlog in the Eagle Ford Shale in South Texas has fallen by as much as a third over the past six months, according to data compiled by Alex Beeker, a researcher at Wood Mackenzie.