OPEC leaders say they believe U.S. shale oil production will increase in 2021 as crude prices increase.
On Thursday, OPEC said in a monthly report that the supply outlook is more “optimistic” and will increase in the second half of this new year. It indicated U.S. total oil supply will increase by 370,000 barrels a day to a total of 17.99 million bpd.
“The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.
The prediction of oil output is up 71,000 bpd from an earlier monthly report by OPEC.
The report came as oil prices hit $57 a barrel this week, a figure that was an 11-month high.