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CBNC: Oil prices could go down, because of growth of production in US

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fused dollar sign and oilIn the near future oil price will most likely go down, than up, because growth of production in the US outweighs influence of the geopolitical tension in Ukraine, Inrterfax-Ukraine told CNBC.

The oil boom in the US has more influence on the world market and its role will strengthen even more after opening of the Keystone pipeline branch from the terminal in Kushing, Oklahoma, to Port Arthur, Texas. Physical volume of oil traded at the New York exchange stock (NYMEX) is stored on the terminal in Kushing. The biggest oil refinery in the US, which used to be the biggest in the world, is located on Port Arthur. As it is located on the coast of the Gulf of Mexico, Port Arthur could become a new important centre of the oceanic transportation of oil and oil products.

Right now the US produces the biggest amount of volume since 1988 – about 8.2 million barrels a day, up 3 million barrels a day against three years ago. “I believe that by the end of the year the US will produce about 9 million barrels of oil a day,” Andrew Lipow, President of Lipow Oil Associates, told CNBC.

In January 204 Texas produces just a little bit more less than 2.9 million barrels a day as Kuwait.

However, US still imports a significant volume of oil – about 7.6 million barrels a day last week against 9.8 million barrels a day in 2008, but the geography of deliveries keeps on changing.

Canada and Saudi Arabia still remain the biggest sources of import, but US buys less oil in Africa, import of hydrocarbons from Nigeria declined by almost 10 times to 34,000 barrels a day.

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