Global crude oil prices have slipped marginally after American oil exploration companies scaled up the deployment of rigs.

As of 4 December, US West Texas Intermediate CLc1 declined 46¢ to remain at $57.90 a barrel, while brent futures LCOc1 fell by 39¢, settling at $63.34 a barrel, according to Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The US-based drillers increased the number of oil rigs from 477 last year to around 749, due to increased budgetary allocations for this year.

“The extent of US production growth and the strength of global oil demand in 2018 remain the main uncertainties. OPEC will increasingly work to manage the market.”

BMI Research was quoted by the news agency as saying: “The extent of US production growth and the strength of global oil demand in 2018 remain the main uncertainties. OPEC will increasingly work to manage the market.”

Through the increased spending plans, American companies intend to benefit from oil price recovery made possible by the agreement reached by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers, including Russia, last year to cut oil production by 1.8 million barrels per day (bpd).

Scheduled to expire in March next year, the production cuts have been extended until December in a recent meeting between OPEC and other non-OPEC producers.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Notwithstanding the latest agreement, producers can choose to exit the deal early, in case the market overheats.

Meanwhile, Russia is wary of possible increase in US oil production caused by the extension of the output cuts.

In September, US production jumped to 9.5 million barrels a day, which represents the highest monthly output since 9.6 million barrels a day in April 2015.