NEW YORK/HOUSTON (Reuters) by Devika Krishna Kumar and Jennifer Hiller – U.S. shale producers are expected to restore roughly half a million barrels per day (bpd) of crude output by the end of June, according to crude buyers and analysts, amounting to a quarter of what they shut since the coronavirus pandemic cut fuel demand and hammered oil prices. Such a swift rise in U.S. production would complicate efforts by top producers Saudi Arabia and Russia to encourage global allies to fulfill their pledges to make record production cuts. They, along with allies in a group known as OPEC+, agreed to big cuts in April to balance oil supply to prop up prices, and anticipated similar economic cuts by the likes of the United States as well. U.S. producers cut supply by roughly 2 million bpd. But the recovery in benchmark oil prices to around $40 a barrel makes some shale output profitable again, even though that level is unlikely to spur additional new drilling activity. Larger producers are re-opening the taps in low-cost plays in Texas, but also in expensive shale basins in North Dakota and Oklahoma. “With prices where they are now, if they stay above $30, I… continue reading
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