Oil Supply Fears Grow as US Drilling Activity Slows, OPEC to Keep Cuts Intact

U.S. shale drillers might not bolster activity even if oil prices touch $100.

Workers on an oil-drilling rig setup in the Permian Basin oil field in Stanton, Texas, on March 12, 2022. Joe Raedle/Getty Images

Global energy markets could face tighter inventories heading into 2024 and beyond as U.S. shale companies aren’t keen to expand drilling activity, and the world’s largest oil cartel isn’t bolstering production.

U.S. crude oil prices have slumped by about 7 percent since hitting a 2023 high of about $95 per barrel on the New York Mercantile Exchange. Brent crude, the international benchmark for oil prices, has also trended down after flirting with $95 a barrel on London’s ICE Futures exchange.