Cairo- As the Organization of the Petroleum Exporting Countries (OPEC) coordinate with the biggest oil producer in the world (Russia) to limit the production in order to regain stability and prices’ balance, the U.S. oil continues to grow, exceeding the USD50.
This level represents a profit to rocky oil producers who stopped producing since the U.S. shale oil reached USD26 in January.
The Energy Information Administration (EIA) revealed that U.S. crude oil output will decrease in 2017 less than expected before. The output will drop next year 140,000 barrels per day (bpd) to reach 8.59 million bpd, according to the monthly forecasts’ report published by EIA on Thursday.
EIA expected earlier crude oil production to drop 260,000 bpd, on annual bases. The EIA reduced growth of demand on U.S. crude oil to 70,000 bpd this year from a previously forecast 200,000 bpd.
OPEC next meeting in November in Vienna will be decisive regarding prices. Qatar’s Minister of Energy and Industry Dr. Mohamed bin Saleh al-Sada said on Wednesday that representatives of OPEC non-member countries will hold a meeting in Vienna on 28-29 October to resume talks on a roadmap towards sealing a deal.
The Qatari Minister added that there was a positive understanding of the possible role of OPEC and non-member countries to achieve balance in the market.
OPEC announced increasing its oil production in September to the highest in minimum eight years and it raised expectations of supply growth from outside the OPEC in 2017. This indicates a surplus in the market next year, despite the organization’s deal to reduce production.
OPEC added in a monthly report, issued on Wednesday, that it pumped 33.39 million barrels per day last month.