Date: 2 months ago   Category: Energy

Banks fix growth of oil production in the USA against the background of reduction of production in the OPEC countries — Rambler News Service


The USA increases supply of oil and increases a share in the world market while the countries of the agreement of OPEC reduce production, follows from reviews of HSBC, Societe Generale and Bank of America Merill Lynch investment banks. Analysts of Societe Generale noted that the USA influences production of OPEC through sanctions against Venezuela and Iran. "The USA inflicted sanctions on the oil industries of Iran and Venezuela, two key producers of OPEC. As a result of these decisions the USA has now political levers by means of which they influence the considerable volume of supply of oil of OPEC" — analysts of investment bank wrote. "Saudi Arabia and other members of OPEC sharply increased the output, since the middle of 2018, partially in response to an appeal of the USA to compensate the forthcoming sanctions against Iran... The American-Saudi political relations remain strong, and Trump supports prince Muhammad bin Salman throughout all Khashoggi case. In case Saudi Arabia ask to increase once again production to offset losses of Iran and Venezuela, we consider that they will still agree to it" — it is specified in the review of Societe Generale. Analysts of HSBC expect that supply of oil of the countries of OPEC will be reduced in the medium term. "We predict that deliveries of OPEC in the medium term will be reduced: from 31.9 million barrels a day in 2018 to about 29 million barrels a day in 2024" — HSBC notes. Experts explained that new projects of OPEC are generally concentrated in Iran which is sanctions. At the same time Saudi Arabia can reduce oil production lower than 10 million barrels a day as the country leaders "decided to exchange a share in the market for higher prices of oil". According to analysts of HSBC, the growing risks in the world market also call into question the prospects of supply of oil by the countries of OPEC. "The prospects of growth of production of OPEC in the medium term are still complicated by the proceeding sanctions, geopolitical risks, competitive deliveries of the countries out of OPEC, the low prices of oil and problems with demand. In our opinion, gain of the extracting capacities of OPEC in the next six years will not exceed an indicator for the last six years" — it is said in the review. At the same time producers of slate oil in the USA become more and more effective and added more than 2 million barrels a day to the world offer in 2018, analysts of HSBC specify. Bank of America Merill Lynch in the review notes that the total amount of supply of oil of OPEC in comparison with the level of October-November of last year dropped by 1.5 million barrels a day instead of the planned 800 thousand barrels a day. Analysts connected it with excessive observance of terms of transaction of OPEC by some countries (for example, Saudi Arabia) and also considerable falling of production in Iran, Libya and Venezuela. At the same time oil production continues to grow in the USA. "Taking into account recent trends we expect that in 2019 growth of oil production in will be 1.7 million ​​ barrels a day in comparison with

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