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Opinion: The Current Oil Price Rally Is Reaching Its Limits

Green Car Congress

Oil prices have climbed by about 50 percent from their February lows, topping $40 per barrel. But the rally could be reaching its limits, at least temporarily, as persistent oversupply and the prospect of new shale production caps any potential price increase. That has sparked a renewed sense of optimism among oil traders.

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Harvard Kennedy School researcher forecasts sharp increase in world oil production capacity and risk of price collapse

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Such an increase in capacity could prompt a plunge or even a collapse in oil prices, he suggests. Taking into consideration limitation in transportation infrastructure and refining capacity, and environmental barriers to development, the United States could still increase oil production by 3.5 Oil: The Next Revolution."

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State Department releases Keystone XL Final Supplemental Environmental Impact Statement

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Market analysis: cross-border pipeline constraints have a limited impact on crude flows and prices. The earlier 2011 Final EIS was developed contemporaneously with the start of strong growth in domestic light crude oil supply from tight oil formations, such as those formations found in North Dakota’s Bakken region.

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