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