OPEC+ seeks to regain US market share through increased shale output — Reuters

OPEC+ leaders Saudi Arabia and Russia aim to reclaim market share from the United States by boosting shale oil production. Currently, US production is quite vulnerable to price competition, Reuters reports.

US companies' costs have risen significantly over the past three years. Their revenues are falling due to declining global oil prices. This situation is partly linked to the economic consequences of President Donald Trump's tariff policies.

According to strategists cited by the agency, OPEC+'s plan is to put a lot of uncertainty in the plans of other nations. The alliance could drive oil prices below the current $65 per barrel to less than $50–60.

Meanwhile, the organization justified its decision to increase crude production by citing favorable current market fundamentals, reflected in critically low oil inventories.

However, OPEC+ output increase comes as the Permian Basin’s once highly productive oilfield have been depleted. US companies are now being forced to shift to secondary sites, driving up their operational costs.