OPEC and other oil producing nations have urged US shale producers to help support prices and cut down global glut.
At the energy conference CERAWeek held in Houston, Texas, OPEC Secretary General Mohammed Barkindo noted that there is an understanding between oil-producing nations and US shale producers that ‘we all belong to this industry’.
With the rise in US shale production, the OPEC’s output cuts have been undermined, reported Reuters.
The price of CLc1 LCOc1 oil steadily increased last year following the decision of OPEC and other oil producing nations to cut production by 1.8 million barrels a day as of 2017. This measure pushed up the prices. However, the US production witnessed a sharp increase over the last few months – output hit a record high last November crossing the ten million barrels a day mark and is expected to cross 11 million barrels a day in 2018.
Nigerian oil minister Emmanuel Ibe Kachikwu said that the oil-producing nations have a responsibility to support the prices.
Kachikwu told Reuters: “We need to begin to look at companies that are very active in these areas and begin to get them to take some responsibilities in terms of stability of oil prices.”
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“Some of the same companies that are working in shale are the same companies working in OPEC (member countries).”
However, the names of these firms were not mentioned.