An oil CEO says crude prices could surge 90% to $70 by fall because US firms have 'over-cut production'
Reuters- West Texas Intermediate could explode 90% from current levels and reach as high as $70 a barrel by fall this year, according to the CEO of oil drilling company Canary.
- Dan Eberhart told Markets Insider US oil producers will see a "mini-supply shock" in Autumn as they have "over-cut production."
- The OPEC is meeting on Thursday to discuss extending production cuts, although there are reports the meeting will be postponed.
- Eberhart doesn't think any extension will help support prices, as OPEC members had only a 74% compliance rate on cuts in May, according to a Reuters survey.
- Eberhart expects OPEC's compliance with cuts to fall further to about 50%.
- Track price of oil live on Markets Insider.
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Dan Eberhart, chief executive of Canary Drilling Services told Markets Insider: "When US production numbers comes out, we are going to find out the US producers have cut more production than they needed to so there is going to be a mini supply shock for the US oil market."See the rest of the story at Business Insider
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* This article was originally published here
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