Oil rises after OPEC’s Barkindo says U.S. shale growth may slow in 2020

Crude oil price rose after industry data showed a surprise drop in U.S. crude inventories, while comments from an OPEC official about lower-than-expected U.S. shale production growth in 2020 also provided some support.

Brent futures rose 39 cents, or 0.6 per cent, to 62.76 dollars per barrel, while U.S. West Texas Intermediate crude gained 39 cents, or 0.7 per cent, to reach $57.51

The Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC) Mohammad Barkindo said on Wednesday that there would likely be downward revisions of supply going into 2020, especially from U. S. shale, adding that some U.S. shale oil firms see output growing by only 300,000-400,000 barrels per day (bpd).

OPEC and its allies, including Russia, meet on Dec. 5 and Dec. 6 to discuss output policy and production curbs of 1.2 million bpd that have been in place since January with the aim of supporting crude prices.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.