OPEC Is Freaking Out About America's Shale Boom

America’s shale boom is sending shockwaves through OPEC as the organisation heads for its annual meeting Friday, the Wall Street Journal reports this morning.

The main concern is that a global supply glut will weigh down prices, which would be a big problem for petrostate budgets.

From the WSJ:

While Saudi Arabia can tolerate lower prices, “there will be some members, like Venezuela, Iran who will struggle at $90,” said Amrita Sen, chief oil analyst at London-based Energy Aspects Ltd. The front month Brent contract for July settled at $102.62 a barrel Monday. Venezuela’s oil minister said on Monday that he would push for a cut in OPEC production if oil falls below $100 a barrel.

We’ve previously shown how falling prices is a concern in the following graph of break-even oil prices for those countries’ budgets.

Oil Prices Blog Chart pacifica

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.