IEA Expects US to Lead Global Oil Supply Growth to 2024


The report came on the same day that Secretary of State Mike Pompeo was due to meet with senior US oil executives at the CERAWeek by IHS Markit conference in Houston to discuss boosting crude exports and advancing America's position as a global energy powerhouse, according to people with knowledge of the meeting.

Brent was at $67.14 a barrel at 1320 GMT, up 47 cents or 0.7 percent.

The oil cartel and partners agreed to slash production in December, taking 1.2 million barrels per day off the market in order to prevent supply glut and a further slump in crude prices.

"This is just the beginning", said Phil Flynn, senior market analyst at Price Futures Group Chicago.

While crude output is still expected to reach record levels, the Energy Information Administration trimmed its 2019 forecast to 12.3 million barrels a day - 110,000 barrels-a-day lower than it had forecast previously. "It looks very supportive as refiners come out of maintenance". In February, US crude oil exports hit an all-time high, with shipments amounting to over 3.6 million barrels a day. The EIA also revised down its projected 2020 production figure.

The terminal resumed operations by Wednesday, according to two sources and Refinitiv Eikon data, but shipments have not started up.

According to an annual five-year outlook report by the International Energy Agency, the United States became the world's top oil producer in 2018, and is set to become the world's biggest oil exporter over the next five years. Power has been restored to many parts of the country in recent days.

According to the IEA, OPEC is now putting its stake on Iraq as the major source of output growth from the alliance in the upcoming years, thereby compensating for a production downturn in US-sanctioned Iran and Venezuela.

The so-called OPEC+ alliance, including Russian Federation and other producers, agreed in December to reduce supply by 1.2 million bpd from 1 January for six months, which will help to boost oil prices after last year's downward trend.

The was one of the major talking points in a meeting between Petroleum Minister Dharmendra Pradhan and his Saudi counterpart and the chairman of Saudi Aramco, Khalid A Al-Falih, in New Delhi on Saturday.