MarketLine Blog

Posts tagged to oil production

US becomes world’s leading oil producer: Expanded oil production changes global industry dynamic

MarketLine

For a long time the US has been a leading oil player, but the combined might of OPEC was sufficient to reduce the global influence the country could have. However, thawing relations between Russia and Saudi Arabia reveal a decline in the ability of Gulf oil states to shape the international oil price according to domestic wants. Under such circumstances, expanding US production over much of the last decade has gone up against comparatively steady production from both Russia and Saudi Arabia. The US Energy Information Administration (EIA) predicts the… Read more

OPEC: Supply restriction amid global oil glut

MarketLine

OPEC, consisting of 13 oil-rich governments, is the only true cartel allowed, albeit grudgingly, to operate in today’s global economy and it wields considerable power. In 1973 Arab members imposed an oil embargo on the US during the Arab-Israeli war which tripled prices in a matter of months. Three times in recent history OPEC has stepped in to shore up the oil market, and each time prices rallied within days of action being taken. It is fair to say, therefore, that OPEC is a force to be reckoned with. Or… Read more