Mohammed Barkindo of OPEC today addressed American shale oil companies to engage them in reducing oil sales globally, pointing to the probable necessity to implement extraordinary measures in 2018 to hold the market at the new level in mid- and long term.
Barkindo urged U.S. producers in the shale basins to take part in the cooperative action and to regard this issue seriously as the biggest lesson given by the ongoing supply-driven cycle. OPEC’s Secretary General voiced these concerns in the course of a speech he gave in New Delhi.
Although OPEC member-states and other countries, with Russia in the lead, have lowered supplies this year aiming to grow prices, U.S. output has jumped by nearly 10% this year, which is largely shale drillers’ contribution. Barkindo expressed his hopes that all the new oil companies and shale drillers would support this measure.
Yesterday, Saudi Arabia decreased crude oil supplies for the next month by 560,000 barrels a day, in compliance with the agreement on supply reduction of OPEC. But the Arabic state’s scheduled supply amount is 7 mln barrels daily in November, higher than the summer volumes kept down thanks to the peaking internal demand.