OPEC Members Concerned Over Growing U.S. Oil Production
In the last week of October, U.S. oil production touched a record 11.6 million barrels a day, surpassing both Russia and Saudi Arabia.
Ramped-up production by the U.S. -- ahead of the expected U.S. sanctions on Iranian crude which took effect this week -- has OPEC members and some non-OPEC members on their toes, as they meet over the weekend.
With the oil prices already dropping from a four-year high in early October owing to concerns of a supply glut, this sudden jump in U.S. oil production is expected to only add to these supply concerns, which could put downward pressure on prices. West Texas Intermediate futures are already down 20% from the near four-year high.
U.S. oil production is already up a stunning 2 million barrels a day from the same period last year, and 400,000 barrels from the week earlier, based on weekly U.S. government data. The U.S. government expects October production to be around 11.4 million barrels a day and expects production can enhance further to 12.1 million barrels a day on average next year.
What will happen to prices as a result?
