An oil CEO says crude prices could surge 90% to $70 by fall because US firms have 'over-cut production'

Reuters

• West Texas Intermediate could explode 90% from current levels and reach as high as $70 a barrel by fall this year, according to the CEO of oil drilling company Canary. 
• Dan Eberhart told Markets Insider US oil producers will see a "mini-supply shock" in Autumn as they have "over-cut production." 
• The OPEC is meeting on Thursday to discuss extending production cuts, although there are reports the meeting will be postponed.
• Eberhart doesn't think any extension will help support prices, as OPEC members had only a 74% compliance rate on cuts in May, according to a Reuters survey. 
• Eberhart expects OPEC's compliance with cuts to fall further to about 50%. 
• Track price of oil live on Markets Insider. 
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The CEO of an oil drilling company thinks the US oil market is headed for a "mini-supply shock" with US oil prices braced to rise over 90% to $70 a barrel by the fall as the US has "over-cut production."

Dan Eberhart, chief executive of Canary Drilling Services told Markets Insider: "When US production numbers comes out, we are going to find out the US producers have cut more production than they needed to so there is going to be a mini supply shock for the US oil market."

See the rest of the story at Business Insider

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