"OPEC realized they're facing an impossible battle -- and instead has retreated," said Matt Smith, director of commodity research at Clipper Data.
Ultimately, OPEC decided the financial pain inflicted by the collapse of crude trumped the benefits of continuing to push out producers like the U.S. that tend to need higher prices.
"OPEC hasn't been able to slay the dragon that is the U.S. shale boom," Smith said.
Waterborne crude volumes (including imports) delivered to coastal refineries in Texas, Louisiana and Mississippi by domestic producers peaked at 27% of inputs in 2014 as regional plants processed increasing quantities of shale crude.
Oil prices hit 2016 highs on Thursday, with U.S. crude surging 5 percent to pierce the $40 barrier, on optimism that major producers will strike an output freeze deal next month amid rising crude exports and gasoline demand in the United States.
In the past month, oil has seen a tentative production freeze involving almost three-quarters of the world’s producers, shale oil output falling, talk of a possible OPEC cut later this year, improved macroeconomic data and fewer fears of a recession, and China soaking up barrels for its Strategic Petroleum Reserve.
Crude futures settled with a sharp loss on Tuesday after Saudi Arabia's oil minister, Ali al-Naimi, shattered any hopes that producers would cut back on output to help alleviate the world's excess supplies.
Despite the resurgence of oil prices that saw 12 percent gains on Friday following claims that the Organization of the Petroleum Exporting Countries (OPEC) is close to discussing cuts with non members, analysts warn that the rebound is based on "false hope."
U.S. crude prices fell 2 per cent on Wednesday after stockpiles at the main U.S. delivery point hit record highs, while Brent rose for the first time in five days after Russia suggested oil producers cut output by a million barrels each.
Two tankers of US oil arrived in Europe last week, delivering the first cargoes allowed since Washington repealed a decades-old ban on exporting crude. With two more vessels now crossing the Atlantic, oil market watchers have a simple question: why?
After US crude prices broke below $30 per barrel for the first time in 15 years, the market is asking how low oil futures can go? Most analyses see it rebounding in the back half of 2016, but crude faces significant headwinds in the coming months, experts told CNBC.
Crude oil is getting slammed on Monday, with front-month contracts for Brent and West Texas Intermediate each down more than 6 percent at their lows for the day. Meanwhile, Western Canadian Select, a heavier blend of crude, is trading at $16.32 per barrel.
The race to load the first freely exported U.S. crude cargo was won by NuStar’s Corpus Christi terminal, edging out Enterprise’s Houston terminal, as the Theo T set sail for Italy on New Year’s Eve with Eagle Ford crude and condensate on board.
The end of U.S. oil's four-decade isolation from global markets was in sight Wednesday, as congressional leaders negotiated a $1.1 trillion spending deal that included a provision to lift the ban on sending American crude abroad.
American travelers are being treated to bargains at the gasoline pump this Thanksgiving weekend. Prices are at their lowest level for the holiday since the financial crisis of 2008 despite heightened tensions in the Middle East and a spate of terrorist attacks that would normally lead to higher prices.
A traffic jam of oil tankers, with more than 20 million barrels of crude, has emerged along the Texas coast this month, a snarl that some traders see as the latest sign of an unyielding global supply glut.
Global oil markets tumbled on Wednesday, with U.S. crude futures settling down 4 percent after bullish impact from lower crude inventories was offset by large gasoline builds that raised concerns about high autumn fuel supplies.
Crude oil distribution to Houston area refineries is still being re-plumbed to reflect the ongoing transition to domestic supply. Although plenty of new pipelines provide access for new crude flows into Houston, logistic challenges arise from a crude quality mismatch with refinery configurations.
Data from the Energy Information Administration (EIA) shows that inland barge movements between the U.S. Midwest and the Gulf Coast increased 10 fold between January 2011 and October 2013 to nearly 160 Mb/d in response to soaring crude production and pipeline congestion.
A Texas-based affiliate of Mitsubishi Corp has exported the first condensate cargo from Texas International Terminals in Galveston, Texas, industry firm ClipperData said, as shippers increasingly find more berths from which to move the super-light U.S. oil to international markets.
BP Plc and Royal Dutch Shell each have shipped cargoes of Canadian crude oil out of the Texas coast this month, according to industry firm ClipperData, highlighting a once-rare journey that is expected to become more common.