10/08/2017 OPEC’s reaction to US and Canadian operations.
10/08/2017 OPEC's reaction to US and Canadian operations.
In the latest report showing the amount of oil extracted by OPEC countries, we can see another increase. This time the result is higher by 0.173 million barrels per day compared to the result from July. The increase in production in Nigeria and Libya had the biggest influence on this increase. This may be a response to increased oil production in North America, whose economies are closely related to oil quotations on the global stock exchange (OIL). The current mid exchange rate is around USD 50 per barrel, which encourages countries to increase their supply of raw material.
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Considering the value itself, the report should be considered neutral. However, it should be remembered that higher oil prices (OIL) may further encourage producers to increase their output. If this happens, and the economies continue to develop at a similar pace, then the surplus of oil will be used quickly. As a result of the development of such a situation - the combination of the increase in demand and high supply, may contribute to the growth of the OIL price to record levels.