VIENNA (Reuters) - OPEC ministers were forced by Texas shale oil producers on Thursday to extend a supply cut into 2018, a regulator from the U.S. state said.
The Organization of the Petroleum Exporting Countries agreed at a Vienna meeting to carry forward supply cuts through at least next March in order to help balance global supply and demand.
Yet rising supply is partly due to U.S. shale oil producers primarily from Texas, which have been happy to pump with abandon as improving technology and steady prices boosted returns.
“Texas shale producers forced OPEC this morning to extend its oil production cuts for nine months,” said Ryan Sitton, of the Texas Railroad Commission. The three-person body regulates the Texas oil industry.
Rather than restrain output, U.S. producers are expected to increase output by more than 1 million barrels of oil per day next year.
“Less OPEC oil on the market enhances the opportunity for American energy to fill needs around the world, and will help us achieve energy dominance,” Sitton said. “The days of OPEC using oil supplies and prices as a political weapon are gone.”
Reporting by Ernest Scheyder; Editing by Dale Hudson