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US shale oil will dominate the market in coming years, but the tables will turn, OPEC says

Written by Tom DiChristopher at CNBC

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  • U.S. shale oil will drive global production growth in the years to come, OPEC forecasts.
  • However, global shale oil will peak in 2025, and OPEC’s output will then surge through 2040, the cartel projects in its annual World Oil Outlook.
  • OPEC raised its medium-term forecast through 2022 by 2.2 million barrels a day.

The American shale drillers that have upended the energy industry will capture much of the growth in oil demand in the coming years, OPECforecasts in a new report.

But after years of booming U.S. production and flat output from OPEC, the tables will turn, the producer group says.

The forecast, released Tuesday, signals that OPEC believes its battle for oil-market share against U.S. shale will persist for years to come.

The U.S. shale revolution paved the way for a three-year oil price downturn that sent crude spiraling from more than $100 a barrel in 2014 to about $60 today. That has piled pressure on the oil-dependent economies of OPEC nations and forced a round of production cuts this year.

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Written by Tom DiChristopher at CNBC

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