Oil prices have fallen after the US Government stated that shale production is expected to increase by an additional 80,000 barrels per day (bpd) in December, which will be the twelfth consecutive monthly increase.

This development offsets Organization of the Petroleum Exporting Countries‘ (OPEC) efforts to rebalance the market.

Oil production in the country has witnessed a 14% growth since mid-2016 to reach 9.62 million bpd.

Brent crude futures LCOc1 dropped by $0.22 to reach $62.94 per barrel, while the US West Texas Intermediate (WTI) crude CLc1 fell by $0.14 to $56.62 a barrel, reported Reuters.

“Despite the fall in price, traders suggested that further drops are unlikely due to the ongoing supply cuts by the OPEC countries.”

Despite the fall in price, traders suggested that further drops are unlikely due to the ongoing supply cuts by the OPEC countries and other oil-producing countries such as Russia.

The oil cartel is scheduled to meet on 30 November to discuss the ongoing production restriction policy, which is due to expire in March next year.

Next year, global oil demand is expected to reach 33.42 million barrels per day (bpd) of OPEC crude, increasing previous predictions by 360,000 bpd.

According to China’s statistics bureau, refineries in the country increased crude oil processing operations by 7.4% in the last month to 11.89 million bpd.