U.S. Oil Boom Dividing OPEC, Journal Reports
Rising U.S. oil production is dividing OPEC states, and the global oil cartel is struggling to respond to higher North American oil output from shale, the Wall Street Journal reported Tuesday.
OPEC, set to meet Friday in Vienna, will attempt to solve divisions among its African and Arab state members, the Journal reported.
Saudi Arabia, the group’s No. 1 oil producer, is not likely to agree to production cuts to boost prices, while other OPEC states, such as Iran, Algeria and Venezuela, are seeking to boost prices, the newspaper reported.
The United States and Canada are targeting a 21% boost in output by 2018 over this year’s level, the Journal said, citing International Energy Agency projections.
OPEC produces about 30.4 million barrels of oil a day, or about 40% of the world’s needs, Bloomberg News reported.
Crude oil rose $1.45 to $95.60 on the New York Mercantile Exchange in early trading Tuesday, following a report that showed home prices rose by the most in seven years in the 12-month period ended in March, Bloomberg reported.
The Nymex was closed Monday for the Memorial Day holiday. The Department of Energy will release its weekly survey of diesel and gasoline pump prices Tuesday, also due to the federal holiday.
