MOSCOW (Sputnik) – On Wednesday, OPEC agreed to impose an oil production ceiling totaling 32.5 million barrels per day for six months starting January 1, with the option for extension after review.
"That [the extension of the OPEC oil output cut deal] comes down almost entirely to how the US industry reacts. If the US increases its production to the extent where it [the crude oil] is replaced or cut then the appetite for rolling it [the agreement] on will either be ‘we need to do more’ or ‘it stopped working’. If the US doesn’t replace production, then I say the deal almost definitely should be rolled over, because it would be perceived as ‘it’s working’," Brogan said.
On Thursday, former US Assistant Secretary for Fossil Energy Charles McConnell told Sputnik that the agreement reached by OPEC was not likely to last and if it did, US shale producers would be able to fill the global oil demand.
