“The truth is that Non-OPEC / Non-U.S. oil accounts for over 45% of this world’s crude oil supply and it is now at risk of going on steady decline because so little capital has been deployed in these ‘Other Areas. With demand for oil now increasing by 1.5 to 2.0 million barrels per day year-after-year, we are going to need lots of new supply outside of the shales,” according to ETF Daily News.
In recent months, production declined in OPEC members Saudi Arabia, United Arab Emirates and Venezuela, but output topped a post-Soviet era record in Russia last year. Russia is expected to continue pumping to take advantage of rebounding prices.
“In 2017, demand for oil increased by 2.3 million barrels per day from the first to the second quarter. Last year, U.S. crude oil inventories were at the top of the five year range. Today, U.S. crude oil inventories are in the middle of the five year range,” reports ETF Daily News.
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