WASHINGTON (Sputnik) – Shostak said that the oil production level declared by the OPEC is in reality impacted by the figures that were in the United States, which is not an OPEC member.
"The production in the United States is increasing," Shostak said. "This is a serious pressure on prices. And it is likely that the price will go down to $40 per barrel over the next six months."
Shostak noted that the increased production of shale oil will negatively affect markets.
"The path of the shale revolution is unlikely to change. But business plans, I think, will be revised because it is a serious factor for them," he stated.
Moreover, Shostak noted the latest data on production in the United States is strong.
"These figures show that the production in the country has by no means reached the limit. They are ready to produce more," Shostak added.
Fitch said earlier in March that shale oil production in the United States will increase during the second half of 2017 resulting in the stifling the recovery of global oil prices.
In November 2016, OPEC member states reached an agreement to cut oil production by 1.2 million barrels per day for the first half of 2017 to support global oil prices.
The accord was also supported by 11 non-OPEC states, including Russia, Mexico and Kazakhstan, which had joined the deal by promising to reduce oil output by 558,000 barrels per day. The deal was reached for a six-month period with a possibility to extend it.