Futures fell 0.3% in New York after climbing 2.5 percent in the previous two sessions. Drillers boosted the rig count by two to 751, a three-month high, according to Baker Hughes data on Friday. OPEC-led output curbs may end earlier than scheduled if the market re-balances by June, Kuwait’s then-oil minister said Sunday. Oil is heading for a second yearly gain as the Organization of Petroleum Exporting Countries and its allies including Russia extend supply cuts through the end of 2018. The extension includes an agreement to review the cuts in June, raising questions of how OPEC will eventually phase out the reductions. Shale explorers have signaled they’re gearing up for a drilling surge next year as hedging rose for an eighth week to a record. Click Read More below for additional information.
U.S. crude output is accelerating, highlighting OPEC’s dilemma as the cartel reins in its own production to revive prices.
Crude supply will average 12.41 million barrels a day this year and 13.2 million in 2020, the U.S. Energy Information Administration said on Tuesday, up more than 300,000 barrels a day from the previous month’s estimates. The latest short-term energy outlook “puts the nation on track to set a new production record for a third consecutive year,” EIA Administrator Linda Capuano said in a statement.
more at source: https://www.bloomberg.com/news/articles/2019-02-12/soaring-u-s-crude-oil-production-highlights-opec-s-quandary