With shale subdued, #Saudi, Russia become more comfortable with oil rally | Reuters

With shale subdued, Saudi, Russia become more comfortable with oil rally | Reuters

Saudi Arabia and Russia are more confident higher oil prices will not elicit a fast response from the U.S. shale industry, OPEC+ sources said, reflecting a desire to rebuild revenue and supporting the case against raising OPEC+ output more quickly.

The two countries lead the OPEC+ group of the Organization of the Petroleum Exporting Countries and allies. OPEC+ supply restraint has underpinned a rally that pushed global benchmark Brent crude to a three-year high of $86.70 last month.

The signs that Riyadh and Moscow are less wary about higher prices help explain why OPEC+ has rebuffed calls from the United States and other consumers for a more rapid unwinding of output cuts made last year during the worst of the pandemic.

"OPEC+ keeps an eye on U.S. oil production and reserves and for the time being the alliance has no worries about that," said a Russian OPEC+ source. "U.S. shale oil output is recovering relatively modestly."