The net effect is the same : An oil market potentially facing years worth of oversupply Oversupply , a scenario the Saudis and OPEC have not been forced to grapple with since the early 2000s , before the rise Grow.strong of China triggered a decade-long price boom Grow.strong .

As oil demand falters Movement.down.loss amid a global economic slowdown Slow.weak and supplies swell Movement.up.gain thanks to the U.S. shale boom Grow.strong , the coalition spearheaded by Saudi Arabia and Russia is expected to formally prolong output curbs Cause.movement.down.loss for another six months .

The U.S. shale boom Grow.strong and threat of a global recession could lead to a oil-supply glut Oversupply , potentially driving OPEC to signal that it 's ready to deepen Situation_deteriorate supply curbs Cause.movement.down.loss .

Oil prices have fallen Movement.down.loss as much as 20 percent since June , despite a host of rising Movement.up.gain supply risks , leading more investors and traders to consider whether 2015 is the year in which the U.S. shale oil boom Grow.strong finally tips the world into surplus Oversupply .

Brent and U.S. crude both remained near five-year lows Position.low as the market grappled with oversupply Oversupply due to the U.S. shale boom Grow.strong and the recent decision by the Organization of Petroleum Exporting Countries not to cut Cause.movement.down.loss production .

The U.S. government said on Tuesday it expects domestic oil supply in 2000 to recover Grow.strong only 2.2 percent , the slowest pace in years , as the relentless rout in prices puts the brakes on the country 's five-year shale boom Grow.strong .

OPEC has weathered conflicts Civil.unrest before , even between its members , but has so far been fortunate that the headwind of exports lost Movement.down.loss to Libya 's civil strife Civil.unrest has been eased by rising Movement.up.gain output elsewhere , most notably by the boom Grow.strong in U.S. production .

A boom Grow.strong in economic growth in Europe or another output cut Cause.movement.down.loss could again push futures higher Movement.up.gain in the short term , but risks appear increasingly skewed lower .

Rising Movement.up.gain supply outside OPEC , particularly the United States due to its shale energy boom Grow.strong , has squeezed Cause.movement.down.loss OPEC 's market share .

In its World Energy Outlook 2018 , the Paris-based IEA said it had cut Cause.movement.down.loss its longer-term oil price projections from last year , partly because of the falling Movement.down.loss cost of both renewable and conventional sources of energy , the worldwide push to tackle climate change and improve air quality and the boom Grow.strong boom Grow.strong in U.S. shale oil and gas output .

In its World Energy Outlook 2018 , the Paris-based IEA said it had cut Cause.movement.down.loss its longer-term oil price projections from last year , partly because of the falling Movement.down.loss cost of both renewable and conventional sources of energy , the worldwide push to tackle climate change and improve air quality and the boom Grow.strong boom Grow.strong in U.S. shale oil and gas output .

The U.S. government said on Tuesday it expects domestic oil output in 2016 to grow Grow.strong only 2.2 percent , the slowest pace in years , as the relentless rout in prices puts the brakes on the country 's five-year shale boom Grow.strong .

Post-recession bounces in Europe and strong Grow.strong demand in India pushed global oil demand to a five-year high Position.high in the third quarter of 2015 , but a glut in supply Oversupply resulting from a shale oil boom Grow.strong and OPEC cartel politics has already weighed heavily Movement.down.loss on oil prices , according to CNBC .

The U.S. government said on Tuesday it expects domestic oil output in 2016 to grow Grow.strong only 2.2 percent , the slowest pace in years , as the relentless rout in prices puts the brakes on the country 's five-year shale boom Grow.strong .

The U.S. government said on Tuesday it expects global oil production in 2000 to recover Grow.strong only 2.2 percent , the slowest pace in years , as the relentless rout in prices puts the brakes on the country 's five-year shale boom Grow.strong .