Prices Above $50 to 'Stimulate' US Shale Oil Production – Rosneft CEO

Prices above $50 per barrel will stimulate shale oil production in the United States, the Rosneft CEO said.

VERONA (Sputnik) — Oil prices in excess of $50 per barrel could drive US producers to ramp up shale oil production, the chief executive of Russia’s Rosneft oil major said Thursday.

"A price above $50 will stimulate oil drilling in the United States, increasing output and market volatility," Igor Sechin told journalists in Verona, Italy.

Sechin said earlier he did not expect US shale oil to leave the internal market to rival Russian oil exports to the Asia-Pacific Region.

Global oil prices have dropped from some $110 a barrel to values below $50 since mid-2014. This eventually led to an agreement within the Organization of the Petroleum Exporting Countries (OPEC) to discuss a cap on oil output next month, in a bid to end the production glut and shore up prices.