US to overtake Saudi Arabia as crude oil producer, says International Energy Agency


US to overtake Saudi Arabia as crude oil producer, says International Energy Agency

The United States are set to overtake Saudi Arabia as the world’s number two oil producer this year, as shale companies, attracted by rising prices, ramp up drilling, the International Energy Agency said today. “This year promises to be a record-setting one for the US,” the IEA wrote in its monthly market report. Crude production of 9.9 million barrels per day (bpd) in the US was now at the highest level in nearly 50 years, “putting it neck-and-neck with Saudi Arabia, the world’s second largest crude producer after Russia,” the IEA said. “Relentless growth should see the US hit historic highs above 10 million bpd, overtaking Saudi Arabia and rivalling Russia during the course of 2018 — provided OPEC/non-OPEC restraints remain in place,” it said. A global supply glut pushed oil prices as low as $30 per barrel at the start of 2016. But producing nations — both inside and outside the OPEC oil cartel — struck a deal at the end of 2016 to cut back production and drive prices higher. Geopolitical tensions and a reduction in oil stocks have also contributed to the recovery. Crude recently rose above $70 per barrel for the first time since 2014 after OPEC and non-OPEC countries agreed to extend their combined cutbacks until the end of this year. Read More…

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