• 4 minutes Why Trump will win the wall fight
  • 8 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 1 min is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 1 hour Solar and Wind Will Not "Save" the Climate
  • 4 hours Some Good News on Climate Change Maybe
  • 5 hours Ayn Rand Was Right
  • 13 hours students walk out of school in protest of climate change
  • 5 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
  • 1 hour Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day Prospective Cause of Little Ice Age
  • 23 hours L.A. Mayor Ditches Gas Plant Plans
  • 1 day *Happy Dance* ... U.S. Shale Oil Slowdown
  • 4 hours IT IS FINISHED. OPEC Victorious
  • 1 day And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
Alt Text

Flurry Of Bullish News Boosts Oil Prices

Oil prices reached 2019 highs…

Alt Text

The Next Big Threat For Oil Comes From China

Oil product prices often lead…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for US-based Divergente LLC consulting firm, and a member of the Creative Professionals Networking Group.

More Info

Trending Discussions

World’s No.1 Oil Trader: U.S. To See Final Oil Output Spike In 2018

The best is yet to come for US oil production—but it will be a short-lived hurrah, according to Ian Taylor, head of oil trading giant Vitol.

US oil production has steadily increased throughout 2017 as US drillers regained their footing after the oil price crash. What started out at 8.946 million bpd of crude oil production in the first week of January has now reached an average of 9.561 million bpd as of September 29, according to the EIA.

The EIA is expecting US oil production to reach 9.8 million bpd in 2018, according to the latest Short Term Energy Outlook.

US crude oil exports, too, have taken the world by storm, particularly over the last couple of weeks, as traders seize an opportunity created by the extra wide spread between WTI and Brent, which as of the latter part of September, reached $7 per barrel, according to data provided by S&P Global Platts.

These US exports are now flooding the global market—a global market that is still oil-heavy as OPEC members—well, most OPEC members—continue to dutifully curb oil production to alleviate the overhang. That overhang is smaller today than it was in December 2016—in fact, 130 million barrels smaller, according to OPEC Secretary General Mohammad Barkindo, but is still 171 million barrels too heavy as of August.

Still, Vitol feels that the current U.S. crude oil production growth is unsustainable beyond 2018.

Vitol is anticipating an increase in US crude production of 0.5 to 0.6 million bpd in 2018, at which point the increase in production would cause cost inflation, rendering at least some of today’s current production projects unprofitable. And according to Vitol, some are barely profitable as it is.

“If you look at the economics on most of the big Permian players, not many of them make a lot of money,” Taylor said, speaking to Reuters.

For now, Vitol is expecting “boringly rangebound” prices, but eventually, the expected slowdown in production, along with “robust” demand growth, will inevitably push up prices past that stubborn $50-$60 level.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Clyde Boyd on October 11 2017 said:
    Isnt it funny how all these oil traders are constantly pimping higher prices when there is little justification for this speculation? The reality is that frcakers will keep producing and the supply will keep,increasing. We can only hope that greedy traders betting on speculation suffer huge losses for trying to tank the US economy by jacking up oil prices.
  • Amvet on October 15 2017 said:
    We remain a net oil importer of around 4 million bbl per day. The more we export--the more we import. Big deal?? Only to balance refinery mixes.

    Oil traders like to push the price around because they profit from price change.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News