US. Crude oil production from its seven major slate pools is expected to merge a record of 7.94 million barrels…
US. Crude oil production from its seven major slate pools is expected to merge a record of 7.94 million barrels per day (bpd) in December, the US Department of Energy Information Management (EIA) said on Tuesday.
Increased production on land has helped global crude production in the United States to hit 11.6 million bpd, making the United States the world’s largest oil producer in front of Russia and Saudi Arabia.
Most analysts expect US output to rise above 12 million bpd in the first half of 2019.
“This, in our opinion, attracts over $ 85 a barrel (for oil prices)”, says Jon Andersson, Head of Commodities at Vontobel Asset Management.
The surplus in American production contributes to rising stocks. Official storage data is released on Wednesday from Energy Information Administration, with analysts expecting a 3 million barrel increase in commercial commodities.
The products’ cartel from the Organization for Oil Producing Countries (OPEC) has looked at the jump in supply and price decline with concern. OPEC has made increasingly frequent public statements that it would start raiding in 201
9 to tighten supply and increase prices.
“OPEC and Russia are under pressure to reduce current production levels, which is a decision we expect to be taken at the next OPEC meeting on December 6,” says Andersson.
It puts OPEC on a collision course with US President Donald Trump, who publicly supports low oil prices and has urged OPEC not to cut production.