BAKU, Azerbaijan, Sept.5
By Leman Zeynalova - Trend:
Oil production growth outside of the US is set to rise sharply over the next few months, Trend reports with reference to the UK-based Capital Economics research and consulting company.
“Oil prices were on a rollercoaster ride in August – falling sharply in the middle of the month before rebounding to broadly where they began it. The Delta outbreak in China was a key factor weighing on prices, not helped by flatlining oil imports partially linked to the fading of stock-related purchases,” said the company.
Capital Economics notes that although oil prices recovered as the outbreak in China was brought under control, investors continued to reduce the size of their net-long position in the futures market.
“This gloomier assessment by investors won’t have been helped by the recent OPEC+ decision to press ahead with raising output. Indeed, the upturn in drilling activity suggests that oil production growth outside of the US is set to rise sharply over the next few months.
Together with a normalisation in economic growth in most major oil consumers, this underpins our view that oil prices will end the year a little lower,” said the company.