OPEC+ refuses to increase production? U.S. oil traders prepare to do it themselves: next year's

Recently, international oil prices have continued to rise, and have now stood at the $80/barrel mark. This is not only the responsibility of the United States to print money, but also the problem of OPEC+'s refusal to increase production. According to the current oil price trend, many institutions have already bet that oil prices will rise to $100/barrel or even higher.

However, this is obviously the last thing to see for the United States, which has been "burned" by inflation. Therefore, judging from the latest news, since OPEC+ refuses to increase production, the United States can only do it by itself.

The U.S. EIA (Energy Information Administration) said that U.S. oil producers are currently increasing production, and as the pace of production increases, U.S. crude oil production will hit a record high next year. The EIA said the country will increase production by 610,000 bpd to 12.41 million bpd in 2023.

You know, the country's record high in 2019 was 12.3 million barrels per day, and if daily production does increase to 12.41 million barrels from next year, it will hit a new high. Why are U.S. shale producers increasing production so much?

EIA believes that this is because the current oil price is relatively high, and shale oil producers can increase production, on the one hand, they can obtain more profits, and on the other hand, they can raise more sufficient funds for the increase in production. From the current point of view, after these shale oil is produced, there is no need to be afraid that there will be no sales.

EIA believes that U.S. oil demand will reach 20.92 million barrels per day in 2023, when global consumption may also increase to 102.3 million barrels per day. So prices could be even higher next year if neither U.S. shale producers nor OPEC+ are willing to increase production.

Today, U.S. shale oil producers have started to increase production ahead of schedule, which actually helps them gain more market share in the subsequent competition with OPEC+. Finally, do you think that in this round of competition, the US shale oil companies will gain the initiative again?