AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

OPEC says US oil production to rise again in 2018

VIENNA: US oil production is set to rise further this year, OPEC said Wednesday, but the crude market will continue
Published March 14, 2018

VIENNA: US oil production is set to rise further this year, OPEC said Wednesday, but the crude market will continue to rebalance as cartel members and Russia trim their output in a bid to support prices.

The US supply increase is expected to come as the Organization for Petroleum Exporting Countries, dominated by oil giant Saudi Arabia, works with Russia to slash output after prices for crude plummeted to around $30 per barrel in 2016 from over $100 two years earlier.

Shale oil -- which accounts for the majority of US supply -- is expensive to produce, and is therefore unprofitable when prices are low.

Now that crude prices are safely back up at well over $60 per barrel, American companies are taking advantage.

Other shale producers such as Britain, Canada, Brazil and China are also expected to boost output, OPEC said in its monthly report.

Non-OPEC members are set to produce 59.53 million barrels per day (bpd) in 2018, the cartel said, revising its previous estimate upwards by 0.28 million bpd.

US production growth is still expected at 2.7 percent in 2018, up from 2.3 percent in 2017.

OPEC countries will meanwhile continue to honour their 2016 agreement to keep supply low, they said.

Cartel members' production went down 77,000 bpd from January to February, the report said, citing secondary sources.

The United Arab Emirates, Iraq and crisis-hit Venezuela pumped less oil in February than the month before, while Angola and cash-strapped Nigeria produced more.

On the demand side, OPEC revised higher its expectations.

With global economic growth strong at 3.8 percent, oil demand will be strong this year, OPEC said, particularly in China.

"The current healthy momentum in the global economy, together with the efforts undertaken by the OPEC and non-OPEC oil producing countries ... is supporting the rebalancing of the oil market fundamentals," the report said.

Copyright AFP (Agence France-Press), 2018
 

Comments

Comments are closed.