Strong U.S. oil production is helping to keep prices low, according to a recent article by United Press International.
UPI reports that oil prices are under $50 per barrel, which is well below the $100 per barrel seen in 2014. “Producers in the United States are partially responsible for the current oversupply in oil,” the article states. “Global supply increased by 260,000 barrels per day in February, to 96.52 million barrels per day, and U.S. production is the highest it has been in a year, at 9.1 million barrels per day, roughly the amount Saudi Arabia produced in February.”
The United States also has 528.4 million barrels in storage, seven percent more than it stored a year ago, according to UPI. “The U.S. effort largely nullified a 2016 agreement by OPEC, Russia and 10 non-OPEC oil producing nations to limit production, which sent oil prices to about $55 per barrel but encouraged U.S. producers to pump more oil,” the article states.
To read the UPI article, click here.
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