Reuters exclusively reported that officials from the Organization of the Petroleum Exporting Countries (OPEC) heard from industry experts that U.S. oil output growth will likely remain limited in 2021 despite rising prices, giving it more power to manage the market in the short term before a potentially strong rise in shale output in 2022. Oil prices rose about 1% on Friday, after the Reuters report was published.
Officials from OPEC and its allies such as Russia were told that U.S. shale output is likely to grow by 200,000 barrels per day (bpd) this year, and by 500,000 to 1.3 million bpd in 2022, Reuters learned. The lack of a large shale rebound could make it easier for OPEC and its allies to manage the market and could inform their production policy on tapering their output cuts when they meet on July 1.
Oil prices rose about 1% on the news.
Topics of Interest: Business & Finance
Type: Reuters Best
Sectors: Commodities & Energy
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Major Global Story