Oil steadied below $49 a barrel as U.S. drillers continued to boost activity, countering OPEC’s efforts to drain a global glut.
Crude prices could plunge toward $30 a barrel — a rout of about 40% from current levels — unless OPEC extends production cuts that are propping up the market, ABN Amro Bank NV said.
Shale wildcatters pushed ahead on the biggest surge in U.S. oil drilling since 2012 as explorers take advantage of prices above $50 for more than two months.
Oil traded near the highest since July last year amid optimism OPEC and 11 other producing nations will cut output as promised, helping eliminate a global supply glut.
Oil retreated from a 16-month high after OPEC pumped a record amount of crude in November.
OPEC agreed to cut production for the first time in eight years, according to a delegate briefed on the matter, sending oil prices more than 6% higher as Saudi Arabia and Iran wrong-footed traders who expected a continuation of the pump-at-will policy the group adopted in 2014.September 28, 2016
The surplus in global oil markets will last for longer than previously thought, persisting into late 2017 as demand growth slumps and supply proves resilient, the International Energy Agency reported.September 13, 2016