US dethrones Saudi's in oil market

amsterdam - American oil producers are soon to confer Saudi Arabia as the main force of the OPEC cartel. They produce at much lower costs, turning the oil market upside down.

This is what the International Energy Agency (IEA) puts in its monthly oil report. Especially the countries that are not part of the OPEC oil cartel are scaling up their offer, OPEC acknowledged on Monday.

The market researcher assumes a strong increase in the amount of oil pumped up in the United States. In the long run, this must lower the oil price, mainly thanks to substantial printed production costs.

OPEC has for years tried to keep its members on board with production agreements. Last year this was followed by a line, but the new outflow of producers who press oil and gas cheaply from American shale layers is pushing the prices.

In January, American oil production was 1.3 million barrels per day higher than a year ago, according to the IEA figures. In addition, the American producers delivered ten million barrels a day in November. That is a level that has not been achieved since 1970.

The IEA predicts that the US will produce more than Saudi Arabia and possibly later by the non-OPEC member Russia.

For the current year, the agency still anticipates growth in the demand for oil with a size of 1.4 million barrels. On the other hand there is the supply with 1.6 million barrels.