OPEC and Non-OPEC Nations Poised to Extend Output Cuts

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OPEC and other oil producers appear set to extend production cuts in an effort to shore up prices. But the hoped-for benefits could be short-lived.

That's due to U.S. shale producers. With prices above $50 from lows of last year, they are increasingly moving back into the market. Their output already is partially offsetting the cuts, and even more U.S. companies are poised to return if prices rise further.

The reductions have been in effect since November, when the 13-country Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels daily. Non-OPEC countries led by Russia chipped in with another 600,000-barrel reduction.

That deal is due to expire end of June and is likely to be extended at Thursday's meeting of OPEC and non-OPEC ministers.