OPEC wants higher oil prices. But the same things keep getting in the way.
Ever cheaper U.S. shale oil production and growing crude supplies are foiling the plans of the Organization of the Petroleum Exporting Countries to support prices with an export cut designed to remove 1.8 million barrels a day from the market through March 2018.
U.S. shale producers keep making their costs cheaper while Nigeria and Libya — two OPEC countries exempted from the cuts — keep producing more, said Dan Yergin, vice chairman of market research firm IHS Markit.
"It looked like the world was making progress toward rebalancing, but (these) two things have really pushed out rebalancing," added Yergin to CNBC's Squawk Box.
Small, independent producers can churn out shale for $40 — or less — a barrel, he added.