Commodities Weekly: US Oil Production Has Peaked
- By Viresh Kanabar
- 4 min read
Summary
-
- US oil production has now peaked and will likely decline slowly over the next six to eight months.
-
- Declining production provides OPEC+ with more market power as the US has been the largest source of global supply growth this year.
-
- Markets pricing out a recession cuts off the left tail to global demand but does not open up the right tail. This will be driven by Chinese demand.
-
- Expect Saudi Arabia to extend production cuts through September.
Summary
-
- US oil production has now peaked and will likely decline slowly over the next six to eight months.
-
- Declining production provides OPEC+ with more market power as the US has been the largest source of global supply growth this year.
-
- Markets pricing out a recession cuts off the left tail to global demand but does not open up the right tail. This will be driven by Chinese demand.
-
- Expect Saudi Arabia to extend production cuts through September.
Subscribe to Macro Hive Professional to read this article
and enjoy exclusive professional features such as in-depth analysis, insightful op-eds, and more.
Already have Macro Hive Professional account? Log in