WTI Dips On Report OPEC-Shale Firms To Meet

WTI/RBOB prices limped lower after Reuters’ headlines reported OPEC officials will meet with U.S. shale firms at a dinner Monday in Houston, citing two unidentified industry sources.

With US crude output surpassing Saudi’s and nearing Russia’s, OPEC is desperate for US Shale firms to stop ruining the production-cut-deal party.

Reuters’ headlinesOPEC Secretary General Mohammad Barkindo plus other OPEC officials will attend the dinner, one of the sources said. A second source said the chief executives of U.S. shale companies of various sizes have been invited.

The meeting will be on the first day of the CERAWeek energy conference in Houston. A year ago, the Organization of the Petroleum Exporting Countries held unprecedented talks with fund executives and shale producers on the sidelines of the same event.

“Shale has dramatically changed the world’s perception of fossil fuels,” said the chief executive of one shale company, declining to be identified by name. “We now have a seat at the table on pricing.”

OPEC led by Saudi Arabia and non-OPEC Russia have reduced production during 2017-2018 to prop up oil prices.

The United States, which rivals Russia and Saudi Arabia for the position of the world’s largest oil producer, is not participating in cuts as its industry is represented by private producers who can be sued for collusion if they join the deal.