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Don't Panic Over the Saudi Attack and the Oil Supply
(Wall Street Journal) Donald L. Luskin and Michael Warren - After the attack on Saudi Arabia's oil infrastructure last weekend the market reaction was muted, with global oil prices rising only to where they were in May. This was in part due to the explosion in U.S. crude-oil production, which has risen by 3.65 million barrels since the end of 2016, a leap of more than 40%. The only thing keeping global markets from falling into abject glut are offsetting voluntarily production cuts by some of the world's largest producers including Saudi Arabia. And it's only beginning. In the next several months, pipeline capacity in West Texas' Permian Basin shale fields will expand by about one million barrels a day.