US set to surpass Saudi in oil output
As Saudi Arabia continues to hold back its oil production, the US is set to ramp up its supply to the market.
The International Energy Agency’s (IEA) latest monthly market report has predicted “explosive growth” in US oil production in 2018, forecasting an extra 240,000 barrels per day (bpd). It is thought much of this new output will comprise tight oil from the superpower’s expanding shale sector.
The IEA have forecast that the US will cross the 10mn bpd threshold with this new production taking it past Saudi Arabia as the world’s second largest oil pumper, behind Russia. Saudi Arabia is presently leading the OPEC’s scale back in supply, with around 1.8mn bpd cut from production in a bid to bolster global prices.
The price of Brent crude futures dipped on the news of the anticipated extra supply coming from the US. After a month long rally, Brent crude finished the week 1.8% down at $68.61.