Growth in the U.S. oil production is slowing, but will continue to overpower the OPEC’s attempt to cut the oil supply and normalize the global inventories, to keep the prices of the benchmark capped and maintained at around the $50 level per barrel this quarter, this is according to a poll conducted by CNBC energy strategists traders and economists.
The actual OPEC leader Saudi Arabia is leading calls to deepen production cuts as it battles perceptions of falling compliance. Doubts over the OPEC’s commitment curb the supply tipped the benchmark oil futures into a bear market in June.
Attempts to prop up the price of oil by the producer group have encouraged U.S. suppliers to put more oi; onto an already over-supplied market. But bulls say that’s changing as American productions show signs of leveling out.
The recent declines in the U.S. oil inventories suggest that the plans of rebalancing the market will soon pan out.
Brent Crude average is set to be back in the $50 mark per barrel in the July to September period, according to the median response in CNBC’s survey of 21 strategists, traders and economists. The lowest estimations for oil were $40, while the highest was $55 per barrel.
OPEC is still not opting out the extension of the supply cuts. Together with stabilizing the U.S. inventories, Brent crude futures were up to a two-month high of $52.68 for the July futures, rounding off its strongest so far for this year.