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OPEC forecasts higher U.S. tight oil output in 2017

Xinhua, April 12, 2017 Adjust font size:

U.S. tight oil production is expected to increase quickly in 2017, but the country is pumping more oil at a time when OPEC is trying to re-balance the market, OPEC's monthly report showed on Tuesday.

The Organization of the Petroleum Exporting Countries (OPEC) said that U.S. total liquids production in 2017 is forecast to grow by 0.54 million barrels per day (bpd), higher than last month's forecast, due to the possible quick increase of tight oil output in the country.

"U.S. tight crude output is expected to rise quickly and increase 335,000 bpd for the overall of 2017," the report said, as the main component of U.S. oil output -- tight oil -- is forecast to grow by at least 0.34 million bpd in 2017.

At the last meeting in Vienna in 2016, OPEC decided to cut its oil production by 1.2 million bpd to re-balance the oil market, however, in the meantime, the United States, another big oil producer, is pumping more oil.

"It can be expected that any move towards higher prices will likely lead to resurgence in U.S. tight oil production from the major shale regions," the report said.

As the United States didn't join the oil output reduction, the rise of the U.S. oil output could be a big challenge for the oil cartel. The Non-OPEC producers' oil output is also expected to grow in 2017.

"The number of drilling rigs and the reactivation of companies' spending are the two most important factors leading to an expected output surge in the coming months," the report noted.

OPEC produced 31.93 million bpd last month, lower than its output ceiling set in the last meeting. Enditem