American producers are moving away from oil shale

American oil rose 5.1 percent last week. This was the second week in a row that the raw material gained value. The price of oil is influenced by Maria, the third hurricane this month. In addition, American producers are reluctant to extract shale oil, which also drives up prices.

Last week, the number of shale wells in the US fell by 7 to 749. No new drilling of shale oil has occurred in the past 5 weeks in the US, and August was the first month since May 2016 that the number of shale wells fell.

Meanwhile, the oil market situation could be a little tricky as the third hurricane this month, Maria, is on the way to the Caribbean and is gaining momentum. Moving from the Atlantic to the Caribbean, Maria was a tropical storm but has since turned into a Hurricane-Simpson first-lowest category hurricane on a five-point scale. Currently, the eye of the hurricane is located 225 km northeast of Barbados.

Maria on Monday night or Tuesday is going to hit the French-owned islands of Guadeloupe and Martinique in the Caribbean and Antilles, which Irma has already devastated. Meteorologists do not exclude that in the vicinity of Guadeloupe, Maria will already be a category III hurricane.