Oil market didn’t report the surge in U.S. oil output in the fourth quarter of 2021.
Standard Chartered highlighted that, in October 2021, the U.S. Energy Information Administration forecasted that U.S. oil liquids supply would be 17.86 million barrels per day in November.
An impressive result
The analysts outlined that they estimated that U.S. oil supply averaged 18.795 million barrels per day in November, which they noted was a month on month increase of 352,000 barrels per day.
As the data showed, only Saudi Arabia produced more and the U.S. outperformed countries such as Russia, Canada, Iraq, Norway, the UAE and the UK.
Clarifications and perspectives
“Growth in U.S. supply was predicted to be limited in 2021 because of investor pressure for dividends rather than growth”. But, as Standard Chartered pointed out, analysts missed that “at current prices companies can significantly increase both dividends and capital expenditure”.
In conclusion, the analysts have assured that they expect U.S. oil supply to continue to increase in 2022 and added that this surge will not remain unnoticed for much longer.