Analysts say that US shale oil production could drop by 400,000 barrels a day if the price of a barrel drops to $40.

According to Jarand Rystad, CEO of Rystad Energy, U.S. shale oil production could drop by up to 400,000 barrels per day in the year 2026 if OPEC tries to gain market share.

Rystad, a representative of OPEC, said that the U.S. shale oil production could stay flat if prices remain close to $60 a barrel. However, this would require OPEC members?to maintain production levels at current levels.

Rystad said at the conference that "for 2026, we see a flat growth of shale if OPEC takes a more aggressive stance to bring back volumes." Last year, the U.S. Energy Information Administration predicted that American shale?production would reach 9.7 million barrels per day in 2025. According to LSEG, West Texas?Intermediate traded around $61 a bar on Monday. According to LSEG data, West Texas?Intermediate was trading around $61 a barrel on Monday. A survey of 34 analysts and economists?conducted last December predicted that WTI crude oil would average $58.15 a barrel by?2026.

Rystad stated that if China purchases 800,000 barrels per day to increase its inventory, oil prices could rise to $70. Reporting by Curtis Williams, Editing by Nathan Crooks & Andrea Ricci

(source: Reuters)