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    This Thursday March 6, 2014 photo shows pumpjacks operating in front of a hydraulic fracturing site in the Inglewood oil fields in the Baldwin Hills area of Los Angeles

    Ex-OPEC Head Forecasts Oil Supply Drop Amid US Fracking Firms Bankruptcy

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    Former Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) Rene Ortiz said that in the first quarter of 2016 the world will see the drop in oil production in the United States, Brazil, Russia and West Africa.

    MOSCOW (Sputnik) — The oil prices will rebound since the oil supply is expected to drop amid bankruptcy of small fracking businesses, former Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) Rene Ortiz told Sputnik on Tuesday.

    "The small fracking companies reduce production or go bankrupt. These figures have not come out as yet, but in the first quarter of 2016 the world will see the drop in production in the United States, Brazil, Russia and West Africa," he said.

    Ortiz added that he expected the oil price rebound “to come from outside the OPEC.”

    Market prices for benchmark Brent and WTI crude dropped to a 12-year low in mid-January, sliding below the level of $30 a barrel due to oversupply in the market. Some fracking companies in the United States became unprofitable as oil prices declined below a level that covers the costs required for exploration, development and extraction.

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    oil prices, OPEC, Rene Ortiz
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