OPEC again raised its forecast for the production of its main rivals. It is well known that the OPEC cartel has been reducing production for the second year in order to eliminate the excessive oil reserves and to increase the prices of this raw material. The oil price is currently at three-year highs. But this rally has encouraged American shale oil producers to increase production, according to Bloomberg.
The price of Brent has soared to 70 US dollars per barrel. Higher oil prices, therefore, bring more supplies to the market, particularly in North America, OPEC predicts in its report. Production in 2018 should therefore increase by 160 thousand barrels per day. This is an increase of 16%, which means 1.15 million barrels per day.
Traditional extraction, according to the forecast, the Americans will contribute 820,000 barrels of oil a day. OPEC countries together with Russia will meet for a weekend in Oman. They will rethink their strategy for global black gold stocks. Rising oil prices have already attracted the attention of the Iranian Oil Minister and Goldman Sachs. The ministers from the United Arab Emirates, Iraq and Kuwait insist that there is no need to change the strategy of dampening production. By prolonging the cuts in oil production by the cartel, they want to see a decline in global OPEC oil reserves to a five-year average. This was at a level of 133 million barrels above the average in November 2017. A month earlier, OPEC stocks were 137 million barrels.