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The gradual recovery of U.S. production may force the OPEC+ countries to more actively increase their production in order not to lose market share. However, according to experts, OPEC+ does not need to take drastic steps to do this.
The number of drilling rigs in the U.S. rose by 2% to 392 units over the week, according to data from oil services company Baker Hughes. For January as a whole, the increase was 9%.
Of those, oil rigs accounted for 299 units, and the number continues to rise (by four in one week). From June through October of last year, the number of oil rigs did not exceed 200. At the same time, despite a partial recovery in drilling activity since last fall, the number of rigs is still more than half what it was a year ago.
The OPEC+ deal implies maintaining the current production levels until April, but Kazakhstan and Russia have been allowed to reduce the reduction quota. Thus, in February and March Russia will increase production by 130 thousand barrels per day (bpd). At the same time, Saudi Arabia decided to voluntarily reduce its production during those months by 1 mln bpd, which largely explains the current rise in prices.
The next OPEC+ meeting to discuss quota changes is due to take place in March.
source: reuters.com
The number of drilling rigs in the U.S. rose by 2% to 392 units over the week, according to data from oil services company Baker Hughes. For January as a whole, the increase was 9%.
Of those, oil rigs accounted for 299 units, and the number continues to rise (by four in one week). From June through October of last year, the number of oil rigs did not exceed 200. At the same time, despite a partial recovery in drilling activity since last fall, the number of rigs is still more than half what it was a year ago.
The OPEC+ deal implies maintaining the current production levels until April, but Kazakhstan and Russia have been allowed to reduce the reduction quota. Thus, in February and March Russia will increase production by 130 thousand barrels per day (bpd). At the same time, Saudi Arabia decided to voluntarily reduce its production during those months by 1 mln bpd, which largely explains the current rise in prices.
The next OPEC+ meeting to discuss quota changes is due to take place in March.
source: reuters.com
