OPEC + is betting on the end of the shale “golden age” in the United States

In the United States, in 2020, there will be a decrease in the growth rate of shale oil production. This statement by the Ministers of OPEC+ is given in the material published on Monday by Bloomberg, reports TASS.

 

According to his sources, the participants of this week's Ministerial meeting of OPEC+ "will discuss the possibility of increasing rather than reducing the current level of oil production." "What is the reason? They believe that the rate of continuous growth of oil production in the United States will seriously decline next year, " - said in the material.

The publication also notes that OPEC+ "is betting on the end of the shale "Golden age" in the United States."

 

According to the Agency, some industry experts believe that the level of oil production in the United States in 2020 will increase not so much as in 2019 or last year. The publication notes that sources from among the officials of OPEC countries expressed confidence that the demand for oil in the world can increase more significantly than predicted.

OPEC + countries have been managing production in concert since 2017. At a meeting in July, they extended the agreement to reduce oil production by 1.2 million barrels per day to the level of October 2018, of which OPEC countries account for 812 thousand barrels per day. Now the agreement is valid until the end of March 2020. The main reduction quotas fall on the largest parties to the agreement-Russia and Saudi Arabia (228 thousand and 322 thousand barrels per day, respectively).

At a meeting in Vienna on 5-6 December this year, OPEC + countries will consider the issue of oil production levels after March 2020.

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