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Oil eased losses as growth in U.S. drilling was partially offset by a weaker dollar.

The oil market is risking a supply crunch as producers cut spending on major projects to focus on short-term low-cost shale output in the United States, some of the top crude and products traders said.

Oil producers pledged to consider extending their pact limiting supply, as half a dozen nations said more time was needed to drain swollen stockpiles.

Oil was little changed before a meeting between OPEC and its allies that may signal the outlook for extending their output curbs.

Oil steadied below $49 a barrel as U.S. drillers continued to boost activity, countering OPEC’s efforts to drain a global glut.

Crude prices could plunge toward $30 a barrel — a rout of about 40% from current levels — unless OPEC extends production cuts that are propping up the market, ABN Amro Bank NV said.

Shale wildcatters pushed ahead on the biggest surge in U.S. oil drilling since 2012 as explorers take advantage of prices above $50 for more than two months.

Oil traded near the highest since July last year amid optimism OPEC and 11 other producing nations will cut output as promised, helping eliminate a global supply glut.

Oil retreated from a 16-month high after OPEC pumped a record amount of crude in November.

OPEC’s first production cuts in eight years are intended to shrink the world’s bloated oil stockpiles back to a normal level, paving the way for prices to rise to more than $60 a barrel.