A major financial company just lowered its five-year forecast for the oil price ceiling, as the U.S. continues to increases its oil production, Axios reported Friday.
Citigroup is projecting that over the next five years, oil prices will not rise above $60 a barrel, down from the previous forecast of $65 a barrel.
The Organization of Petroleum Exporting Countries (OPEC) is attempting to raise the price of oil by cutting back production from member countries and others who agreed to the restrictions. The organization has struggled with compliance, however.
July marked the fourth straight month oil production from countries in the OPEC agreement has increased. July also marked the highest month of production from OPEC since December, the month before each country agreed to cut its production, CNBC reports.
Fracking has consistently grown in the major oil fields of the U.S. in 2017. Shale production is expected to hit over 6 million barrels a day throughout August and September, according to CNBC.
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