Sustained low oil prices could kill production for years

Modest downward revisions to 2025 supply belie the longer-term damage to E&P from a weaker oil market

For some time now, $70–80/bl oil has been considered the oil market sweet spot—a price high enough for companies to continue pumping and thriving while being low enough not to damage consumers. The current trade war has prompted the North Sea benchmark Brent to fall to the low $60/bl region and the US marker WTI to around $60/bl, which is leading to a worrying reveal: that the so-called ‘goldilocks’ price was in actual fact more a minimum viable product. It has been OPEC’s mantra for years: oil price stability is needed to encourage continued investment in E&P and maintain a healthy industry. But with the group having lost patience, and Trump’s approach to trade creating fresh volatility