A report by the International Energy Agency (IEA) predicts an increase in oil supply on the market due to higher crude oil production in the United States, which could undermine the efforts of countries involved in the OPEC + agreement.

The Russian daily Kommersant published an article in which it highlighted the report of the International Energy Agency (IEA), which said that the United States, due to increased oil production by the end of the year, would surpass the world's two most important producers, Russia and Saudi Arabia. The agency, based in Paris, said the pace of increased production in the United States could outpace demand growth and would push global oil stocks up, after nearly five years.

In its monthly report, the agency raised its forecasts Growth in oil demand in 2018 to 1.4 million Barrels per day, from a previous estimate of 1.3 million barrels per day, after the International Monetary Fund increased its estimates in January of global economic growth for the current and next years.

The report said that oil production in the United States increased during the past three months by 846 thousand Barrels per day. If production continues to grow, the United States will soon overtake Saudi Arabia, and by the end of this year Russia will become the world's largest crude oil producer.

Official data show that crude oil production in Russia last November was 10.1 million barrels Oil per day, while, Saudi Arabia's production reached 9.9 million barrels per day, while the United States produced 10.04 million barrels per day, but the average US production for 2017 as a whole was at 9.3 million barrels per day.

According to estimates from the US Energy Information Administration,

Reference is made to Russia and Saudi Arabia under the OPEC + agreement to reduce production by 1.8 million barrels per day, not increasing their production.

Source: Agencies

Fred Gairley


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