Tanker Owners are keenly waiting for a raise in crude Oil production. Still, according to Gibson, shipbroker the tighter OPEC keep things on July 5, 2021, the US exports are likely to get the greater potential future rewards.
In a latest report shipbroker Gibson said that with Oil rates going back to USD75 a barrel and the very real view of constant demand increasing in the close term, the time to open the supply would normally be now. However, taking everything happened over the past 18 months, the situation is not that simple. OPEC+ has initiated monthly meetings to observe production, demand and prices. This has enabled them to neatly adjust their allowance system. At the time of OPEC+ agreement was yet to get to the final production quantities for August onwards, though many members backed increase of 400kb/d monthly.
According to Gibson, things are somewhat different in the US. In spite of the rise in present Oil prices, the shale producers are indicating significant limit on spending and are maintaining output flat. In the past, at the time of rise in Oil prices the US shale producers would come together and raise the production. The situation is not the same this time as investors are making a demand for enhanced financial returns over raised volumes and energy financiers are moving their focus to renewable. The production for Shale in the US stays below the peak it achieved in January 2020 which was of 9.18 m b/d with the current rate being around 7.77 m b/d. According to Baker Hughes, the current drilling rigs are around 372 which were 670 back then.