US oil production to be No.1 in summer, so what will happen to OPEC prices?

February 8, 2018 10:14 am

Standard Chartered Bank Senior Economist MENA, Pakistan Bilal Khan discusses OPEC, the price and production of oil. He speaks on “Bloomberg Markets: Middle East.”

The US expects to breach the 10 million bpd by summer, so does that mean that winds are shifting against OPEC?

“Brent will continue to consolidate around $61 for 2018, lower than actual prices now,” Khan said.

“We are looking at global oil demand of over 1.6 million barrels per day in 2018, so accounting for non-OPEC producers especially in North America, with their supply being around 1.1 million bpd.”

Watch: US crosses oil production threshold and predictions for crude prices

China is showing strong demand for oil.

“Demand will be a serious issue as it is the reason why prices are rising,” said Khan.

“With global growth expected at 3.8% coming mostly from Asia and China in particular, even with US shale production, demand for oil will play a significant role and the oil market will be supported.”

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.