US shale output set to rise even as Opec cuts supply

New York

US shale is getting in the way of a New Year's resolution by Opec to cut production and boost the market.

Producers and merchants increased their bets on lower West Texas Intermediate crude prices to the highest level since 2007 as futures held above US$50 a barrel. The increase in hedging against a price drop signals a comeback in US shale output, just as Opec members and other producers seek to reduce supply.