OPEC+ Oil Output Growth Contributes to Drop in U.S. Shale Prices

Rising oil production in OPEC+ countries has contributed to a decline in U.S. shale oil prices, Orda.kz reports, citing Reuters.

Increased output from OPEC+ countries, including Kazakhstan, has weakened global demand for U.S. crude. American producers now face growing competition amid volatile market conditions.

Despite political pressure, particularly from Donald Trump, to boost production, major U.S. oil companies are preparing to scale back operations and reduce staff. U.S. oil exports in May fell by roughly 200,000 barrels per day compared to April.

The steepest decline has been in prices for U.S. light sweet crude, largely due to increased production at Kazakhstan’s Tengiz field.

The rise in Kazakh oil output makes CPC blend more available. And CPC is increasingly competing with WTI-Midland on the European market, explained Matt Smith, lead oil analyst at Kpler.

Kazakhstan’s CPC blend is similar in quality to U.S. WTI-Midland, making it a direct competitor and contributing to reduced demand and prices for American shale oil.

Original Author: Nikita Drobny