Today's oil prices are helping US drillers beat OPEC cuts – Goldman Sachs

According to Jeff Currie, head of commodities research at Goldman Sachs, today’s oil prices are lending support to the US shale drillers, and hence, offset OPEC's production cuts aimed at shrinking historic global crude stockpiles, CNBC reports.

Key Quotes via CNBC:

"The big shift — and what I think OPEC is trying to generate — is a shift in the curve to backwardation, where spot prices sit above forward prices," 

“Today’s oil prices are cheaper than prices in the future. That works somewhat in U.S. drillers' favor because they heavily hedge their production”

OPEC is too big to hedge, so they get the lower spot prices. What they're after is to flip that curve" 

"If you look at what's happened since the beginning of the year, [the market has] tried to trade the OPEC production cuts, the big draws in the U.S. inventories, and it got stung once in April and again in May."