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The IEA expects USA to overtake Russia and Saudi Arabia in oil production by the end of the year

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The International Energy Agency (IEA) expects the United States to overtake Russia and Saudi Arabia in oil production and at the end of the year and to become world’s leader in oil production. This is stated in a report of the agency for February. According to the three-month data, from November to January, the US oil production rose by the “colossal” 846,000 barrels per day and may soon overtake Saudi Arabia. The expectations are a tendency to remain, and by the end of the year, Washington may overtake Moscow as a global leader in oil production.
The International Energy Agency (IEA) also acknowledges the success of the global oil savings reduction program. According to year-on-year data, the surplus stocks of the OECD countries fell fivefold from 264 million barrels to 52 million barrels in December, which is the largest decline since the last six years.
“It seems the result of the OPEC+ quota deal is almost reached”, says the IEA report. However, they noted that “the rapidly rising yield in non-OPEC countries, headed by the US, is likely to increase more than demand”.
The report shows that the surplus is also declining due to increased demand, with the projections for the current 2018 being to increase by about 100,000 barrels per day to 1.4 million barrels.
OPEC and Russia, which recently were rivals of the oil market, made a union at the end of 2016 in an attempt to reduce the surplus of the raw material and increase its prices.
Last month, the agreement reached its highest level since its entry into force. Then the OPEC+ group cut production by 37% more than predicted, says IEA. A stimulus for the enforcement of restrictions came also from Venezuela, whose oil industry suffered as a result of the country’s severe economic crisis.