OPEC supply cut helped US shale companies, says Barkindo

US shale companies benefited from the supply-cut efforts from OPEC and its allies that boosted prices, Reuters reported on Tuesday, citing OPEC Secretary General Mohammed Barkindo.

The rebalancing of the global oil market was a “work in progress,” and supply adjustments will continue through 2019, he said during a Houston energy conference on Monday.

On Jan. 1, OPEC and its allies began new production cuts to avoid a glut that could pressure prices. The group agreed to reduce supply by 1.2 million barrels per day (bpd) for six months.

OPEC and allies including Russia - known as the OPEC+ alliance - will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26.

Sources recently said the most likely scenario is that the supply cuts will be extended in June but much depends on the extent of US sanctions on OPEC members Iran and Venezuela.