America’s Shale Drillers Keeping Pressure on OPEC

An expected record United States shale oil output is complicating OPEC’s efforts to control the price of oil on the international market, by cutting production.

The problem for OPEC is that the crude oil output in the U.S. has increased “in nine of the last 10 months” with prices having “declined to a three-week low Monday as the growing U.S. output and signs of lower demand from China stoked concern that a global oversupply will linger.”

The gain is being led by the oil-rich Permian basin of Texas and New Mexico, where production has risen steadily over the past two years. The Energy Information Administration projects Permian output to rise by 64,000 barrels in September, reaching a record of 2.6 million barrels a day.