U.S. shale oil supply progress may decelerate next year, OPEC’s secretary-general stated in his latest evidence that the oil industry in 2020 might surprise to the upside.
Mohammad Barkindo stated there would probably be downward revisions of supply going into 2020, especially from United States shale, adding that some U.S. shale oil corporations see output rising by merely around 300,000-400,000 barrels per day.
That would cut back a headwind that OPEC and its members, including Russia, have faced in their efforts to curb production and bolster the market.
Brent crude is trading at $62 per barrel, lower than the level many OPEC nations’ economies need to break even.
Barkindo further stated that Saudi Arabia, OPEC’s top producer, and de facto chief, has encouraged the exporting organization that a stock market itemizing of oil titan Aramco wouldn’t affect the dominion’s position in the group or dedication to output deals.
He stated he was confident that the OPEC+ would proceed with a supply curb deal next year and that the fundamentals of the global economy remained sturdy.
“Progress of 3% or north of 3% in our opinion is strong,” he stated. “This fog is gradually clearing from the global financial system.”
Last week, Barkindo stated the industry outlook for 2020 may have upside potential, appearing to downplay any need to lower output more deeply.
OPEC+ will meet on December 5-6 to set oil policy. Their current deal to cut supply runs until next year.