And the IEA continues to beat the same drum.
Just as the production cuts, aided by a growing global economy, have helped push up oil prices, the International Energy Agency has warned of "explosive" U.S. output growth this year.
Nonetheless, oil prices still remain on positive territory due to the Organization of the Petroleum Exporting Countries' (OPEC) efforts to curb output to ease global glut.
OPEC's cuts have mostly helped US producers though, which are pumping more now and are expected to capture the market that OPEC is forgoing over the next year. "T$3 he underlying oil market fundamentals in the early part of 2018 look less supportive for prices", the IEA wrote. But Opec and Russian Federation have reaffirmed that they'll persevere with their 1.8mn bpd oil-production cuts until the end of this year to clear the glut. This figure is still below the quota of Saudi Arabia at 10.058 million barrels per day.
Without elaborating on the strategy, he added that a draft framework might be endorsed and signed by all 24 countries before the end of the year.
The US Energy Information Administration has in the meantime also reported two consecutive weekly crude oil inventory builds after more than two months of declines. This provides downward pressure on prices, while the growth of the world economy and Saudi Arabia's attempts to reduce supply in the world oil market prevent a significant fall in oil prices.
Pa. Supreme Court Expected To Act Soon On Redistricting Order
The court had directed the Legislature and governor to reach an agreement on a proposed redistricting plan by last Thursday. The primary election in Pennsylvania will go ahead as planned on May 15, with the general election on November 6.
But soaring U.S. production is threatening to erode Opec's efforts. "Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in USA rig count and a slight recovery in the dollar".
On the other hand while the Opec continues to maintain high compliance levels with its stated output cuts, indications are growing that the organisation may not be able to keep output under check, and, for long.
The United States will become a net oil and gas exporter by 2022, the Energy Information Administration (EIA) said in its Annual Energy Outlook.
Last week, major oil producer Saudi Arabia reaffirmed its alliance with OPEC and non-OPEC producers, including Russian Federation, in an attempt to reduce about 2 percent in inventories worldwide.
OPEC Secretary General Mohammad Barkindo, also on Monday, announced that OPEC's compliance with the imposed production cuts is standing at 133 percent, up from 107 percent past year.