A huge growth of U.S. oil production may restrain OPEC and non-OPEC producers from prolongation production cuts beyond June and might drive to a new price war, Russia's top oil company Rosneft said on Monday.
U.S. shale oil output had been in deviation as crude prices dropped from above $100 a barrel in 2014 to below $30 in 2015, making expensive fracking processes less lucrative.
A deal held by the OPEC with Russia and other producers to restrain in output by 1.8 million barrels per day (bpd) for half year from Jan. 1 boosted prices but also inspired U.S. companies to raise supplies.
It became obvious that U.S. shale oil output has become and will remain a new global oil cost regulator for the near future. There are great risks the (OPEC-led) deal won't be prolonged in part because of the main participants, but also because of the production volumes in the United States, which is not going to accept any deals in the near future, Rosneft said.