OPEC+ breakdown could cause US shale output to decline
- Smaller shale operators most at risk
- Output could drop 3.2 million b/d in worst-case scenario
- Producers may start cutting capex
Houston — The breakdown in OPEC+ negotiations for deeper output cuts in response to reduced oil demand stemming from the COVID-19 virus could send push oil prices below $40/b, causing US shale oil production to decline later in the year, analysts said Friday.
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