Investing.com investing.com 10 Jan, 2021 11:15 am

OPEC crude output cuts should help U.S. shale profits in 2021 By Reuters

OPEC crude output cuts should help U.S. shale profits in 2021 By Reuters
OPEC crude output cuts should help U.S. shale profits in 2021

crude oil production has fallen 2 million barrels per day in the last year as low prices and demand forced shale producers to cut their losses.On Tuesday, Saudi Arabia, the world's biggest oil exporter, said it would voluntarily reduce its production by 1 million barrels per day (bpd) in February and March, after Russia pushed to increase output, worried about U.output by 1 million barrels per day while improving investor returns, said Raoul LeBlanc, a vice president at data provider IHS Markit.png) Rising prices in recent years have "tended to be a bit of a mirage," said Thomas Jorden, chief executive of Cimarex Energy (NYSE: XEC ).

"Margins are terrible," said Chris Wright, chief executive of Liberty Oilfield Services (NYSE: LBRT ), the second-biggest fracking company in North America.Shale producers historically lifted production budgets with rising oil prices, said Linda Htein, senior research manager at consultancy Wood Mackenzie.

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