Russia overtakes Saudi Arabia as the world’s second largest oil producer but still lags behind the US
Russia outpaced Saudi Arabia in crude oil production, moving into second place after the USA, the world's largest oil producer, RIA Novosti reports.
According to a review by the Joint Organizations Data Initiative or JODI, in December 2018, the United States produced an average of 11.66 million barrels of oil per day. Russia now produces 10.74 million barrels per day while Saudi Arabia dropped into third place at 10.64 million barrels per day.
Meanwhile, experts of ITI Capital Ltd. said that last week, OPEC “worsened the outlook for the oil demand and increased the share of oil production of non-OPEC countries.” Demand for crude oil this year will rise to 1.24 million barrels per day, which is 50,000 barrels lower than last month’s forecast.
Increased production by non-OPEC countries is estimated at 2.18 million barrels per day, an increase of 80,000 barrels, thanks to an expected increase in the USA's production in the Gulf of Mexico.
At the same time, the analysts state in their review that earlier, the US Department of Energy increased its forecast of oil production in the country in 2019, from 12.1 million to 12.4 million barrels per day.
The investors are now mainly focused on the American-Chinese negotiations, the successful outcome of which will eliminate significant risks for world economic growth and thus for global demand for oil.
“Moreover, reduced oil supplies from Venezuela caused by the new US sanctions will boost oil production,” analysts, believe.