US Shale Surge Offsets Lowest Saudi Oil Imports Since 1980s

Solutions oil refinery is seen at sunset in front of the Philadelphia skyline
Oil gains on disrupted Libyan exports, Saudi promise to put a stable end to curbs
Author

02 March, 2018

According to the EIA, the US will overtake Russian Federation as the world's biggest oil producer by 2019.

American explorers have expanded the fleet of rigs searching for domestic crude to the highest since 2015 as the Opec-led supply curbs resurrected oil markets.

In disclosing this in its Oil Market Report for February, IEA also noted that compliance with OPEC supply cuts reached an unprecedented high of 137 per cent in the review month.

As expiration nears, the front-month Brent futures' premium over its second-month contract is at 11 cents, the smallest since November.

The 2018 federal budget, released February 27, did not have good news for the oil sector, with a forecast for lower oil prices.

Arab News quoted Mazrouei as saying that cooperation between oil producers including Russian Federation had reached levels that were "more than expected".

Mazrouei warned, however, that with the balance returning to the oil market and demand picking up, the energy sector would require hefty investment in the near future - not only by the oil-rich Gulf states, but also global oil companies.

Oil is clearly in a bull market and thus I expect the bullish trend to continue and would not be surprised if we see crude oil break above $80 during the year!

Macron urges truce in Syria's Eastern Ghouta after bombardment escalation
UNICEF said it issued this blank statement because "we no longer have the words to describe children's suffering and our outrage". However, a rebel group formerly affiliated with al Qaeda is not included in the truce and has a small presence there.

The market was also supported by data showing US crude stockpiles fell more than expected earlier this month.

Crude oil prices were hovering near two-week highs on Monday, a possible effect of Saudi Arabia's statement on plans to continue cutting output levels and as last week's upbeat US supply data also continued to support. The U.S. will overtake Russian Federation as the world's largest oil producer "definitely next year", if not as early as this year, he said.

"U.S. shale growth is very strong, the pace is very strong ... The US will become the No.1 oil producer sometime very soon", Reuters quoted Birol as saying.

'That its oil market is dominated by a large number of uncoordinated, private-sector firms, many of whom benefit from lower production costs than producers elsewhere, means the US will remain a major player for the foreseeable future'.

Prices were supported after Saudi Arabian oil minister Khalid al-Falih on Saturday said the country's crude production in January-March would be well below output caps, with exports averaging below 7 million barrels per day (bpd).

Just a few years ago, hardly anyone expected that that the US would be competing with the world's top oil producers for the number 1 spot. According to a recent study by the EIA, under certain scenarios, total U.S. crude oil production could surpass 14M b/d by 2050.

China is the world's second-biggest economy and the biggest importer of oil after overtaking the Unites States previous year.


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