OPEC has put shale producers on the defensive and forced the cancellation of many ambitious oil projects. REUTERS/Heinz-Peter Bader
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OPEC has put shale producers on the defensive and forced the cancellation of many ambitious oil projects with its strategy of going for volume over price.Some OPEC members, led by Saudi Arabia, remain hopeful that they will secure an eventual victory.In November 2014, OPEC ministers decided to maintain their production unchanged even though oil prices had already fallen $40 per barrel, 37 percent, over the previous five months.Twelve months later, oil consumption is growing at some of the fastest rates in over a decade, U.S. shale production has peaked for the time being and non-OPEC oil output is forecast to decline in 2016 .Prices have fallen much further and for much longer than senior Saudi policymakers believed was likely in 2014 .Global oil inventories are still rising by more than 1 million barrels per day.In the advanced economies, the economic expansion is relatively mature and there is an increasing risk of another recession arriving within the next two to three years, which would cut oil demand.
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