US Oil Production to Hit New Record in 2018

“At some point soon, US crude stocks should start building because of winter maintenance, and when that happens, selling pressure could emerge”. Over the last four weeks, motor gasoline product supplied averaged about 9.1 million barrels per day, up by 6.2% from the same period previous year. It had been on a steady up-ward trajectory during Q4 2017.

For a second month in a row, Opec revised upwards its forecast for 2018 oil production from members outside the 14-member organisation. Our forecast for the year’s average price stands at $59.5pb, approximately 10.8% higher than 2017’s average. Total U.S. crude oil production is already expected to break a record at 10 million barrels per day this year.

Outside of USA shale, there is no other growth in production.

“This year promises to be a record-setting one for the US”, the IEA said.

Venezuelan Suffering While the USA gains, there are others that are still suffering. Iran in turn said its nuclear program is only for peaceful purposes.

In a separate report, the Swiss financial services company UBS said it expects oil prices to sink later this years as USA drillers respond to $60 a barrel oil and push global output higher than demand. I put this data together because I believe it shows what a huge outlier the big drop in USA storage levels in last few months of 2017 actually is.

Several analysts have also predicted USA oil output to break through 10 million barrels per day soon. OECD commercial oil stocks in November were around 133 million barrels above the latest five-year average. I can now state, and with certain radiance, that those days are now over and, past the rejoicing, that the United States should use its newly found position to not only prosper but to shut down those nations that are the scourge of our way of life. “Demand is going to continue to surprise on the upside”, he added.

Read:Expert analysis: Could 2018 mark a turning point for oil? As a result, Transandino pipeline stopped operating on January 14 after a bomb planted by ELN rebels caused a crude spill into a nearby river.

Brent crude fell to a session low of $68.31 on Friday, having hit a three-year high of $70.37 earlier in the week.

The global oil glut is shrinking and the monetary tightening expected in 2018 isn’t likely to have a considerable impact on the oil market, particularly in an environment of improving economic growth, OPEC said Thursday.

At the beginning of September, the US had enough oil in storage to last for 31 days. Thus, we figure that with the reduction in the USA inventories and OPEC supply, the global oil markets will have enough elbow room to accommodate the growing United States oil supply and will take some time to go into another downturn. We expect bunker fuel prices may stay steady next week.