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US may cut back on oil output as prices fall below US$90

Singapore

CAN the United States maintain its rate of oil production with the drop in oil prices to below US$90 a barrel?

As the Brent crude oil benchmark fell to about US$83 on Thursday - hitting a fresh four-year low - economists say this could lead the US, now the second largest oil producer in the world, to cut back on production.

The oil price is not sustainable below US$85-US$90 a barrel, said Pedro Antonio Merino Garcia, chief economist at Spanish oil firm Repsol.

Given the higher rate at which...

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