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.
![KAPSARC Oil Market Outlook (KOMO)](https://wscdn-01.kapsarc.org/wp-content/uploads/2019/10/13-150x150.jpg)