US Could Soon Produce More Crude Than Saudis and Russians
America’s journey to pre-eminence in the global oil trade is about to hit another milestone. By the shale-oil boom, the US is already producing more crude than either Russia or Saudi Arabia, who until recently vied for the top spot. By mid-year America will go one better, Bloomberg reported.
At the moment, Saudi Arabia could raise production all the way up to its maximum capacity of 12 million bpd, surpassing the 11.8 million bpd produced by the US in December, according to the International Energy Agency. Soon even that will not be enough.
American crude output is poised to expand by 1.1 million bpd this year, according to the International Energy Agency, which sees the US exceeding the Saudis’ maximum level within the next six months.
“By the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia,” the Paris-based agency said in a report.
That extra magnitude probably will not translate into increased influence over prices, however. As only the Saudis remain willing to hold back production capacity when there is too much oil on the market, the kingdom will retain its unique position as the so-called swing producer.
Global oil demand remains on course to be stronger this year than in 2018 as a boost from lower fuel prices counters slowing economic activity, according to IEA.
Crude prices remain almost 30% below the four-year peak reached in October amid concerns over economic growth in China and the US, the world’s two biggest oil users, who remain locked in a trade dispute.
To prevent markets tipping into oversupply, OPEC and its partners have announced substantial production cuts.
source: Financial Tribune
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Gold loses some luster after Trump’s decisive win
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
