Thursday, 14 Jan, 7.34 pm Money Control

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OPEC sees US shale output recovering further on oil rally

Source: Reuters

The supply outlook for US shale oil is slightly more "optimistic" because of rising crude prices and output will recover further in the second half of this year, OPEC said on Thursday.

US total oil supply will rise by 370,000 barrels per day (bpd) in 2021 to 17.99 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report, up 71,000 bpd from the previous forecast.

A significant rebound in shale could hamper efforts by OPEC and its allies, known as OPEC+, to support the market. Oil prices hit an 11-month high above $57 a barrel this week, supported by OPEC+ supply restraint and a voluntary cut by Saudi Arabia.

"The 2021 supply outlook is now slightly more optimistic for US shale with oil prices increasing, and output is expected to recover more in the second half of 2021," OPEC said.

Also in the report, OPEC left its forecasts for world oil demand unchanged.

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