The recent declaration by OPEC and its partners (OPEC+) to cut oil production by a further 500 thousand barrels per day (Kb/d) should help stabilize prices, which should, in turn, help smaller shale producers. Balancing the market in this manner risks supporting shale producers and further OPEC+ cuts. However, as the market tightens and prices rise in the second half of 2020 or early 2021, we assume OPEC+ members will be able to ease their cuts.
