Oil to hit US$40 if Opec fails to expand cuts, Pioneer says

HOUSTON: Oil prices will tumble to US$40 a barrel if Organisation of Petroleum Exporting Countries (Opec) doesn’t extend its pact later this year to cut output, according to one of the most prominent producers in the shale patch.

US shale drillers are keeping an eye on the second half of the year to see if Opec and non-Opec members extend their agreement, which lasts through June, to reduce production by 1.8 million barrels a day, Scott Sheffield, chairman of Irving-based Pioneer Natural Resources Co, said in an interview at the CERAWeek industry conference held by IHS Markit in Houston.