Oil prices were stable for a long period of time, which saw a hike in December 2017, which is the highest price since June 2015. Since mid-2017, Brent has hiked the oil prices by 47%. The middle-east producer club, OPEC also known as The Organization of the Petroleum Exporting Countries, along with Russia is the biggest single oil producer in the world. It has been upholding the oil to create a scarcity on the market, promoting the price hike.
Jabar al-Luaibi, who is the oil minister of OPEC-member Iraq, also conveyed that the initial months of the upcoming year will see a hike in the oil price due to a balance between the demand and supply.
The New Year or the year after that will be witnessing 100 million barrels per day (BPD). Silence about the prices of the oil will lead to the return of the pipeline system of the Forties in the North Sea. It has the capacity to supply up to 450,000 bpd on the crude basis of Brent futures.
In the long term, the endeavor bestowed by the Russia and OPEC to hike the prices can be suppressed by the US production. This was hiked during the mid of 2016 and is approaching 10 million barrels per day at a faster pace.
The shale drillers of the US are playing a huge role in filling up the oil tankers, which will help cope with the elevating demands of the oil. The only source of oil that is more than the U.S is from Russia and OPEC King-pin Saudi Arabia.
The rig count is an indicator of the future supply. The current number is 747, which were 523 a year ago. With the steep growth, the target of achieving 10 million BPD will cross in mere a few weeks.