OPEC has attempted to equalize the oil market expecting it to yield results; US producers are at the top of getting profits and inundating Europe with the maximum amount of crude. Russia had teamed up with Organization of the Petroleum Exporting Countries last year in scathing oil production mutually by 1.8 million barrels per day (bpd); an agreement that has mainly re equalized the market and one that has assisted up gradation of benchmark Brent prices.
At present comparatively giant prices affected by the agreement along with escalating US production are making it difficult to sell Russian, Nigerian and other oil grades in Europe. A trader with a Mediterranean refiner who often purchases Russian and Caspian Sea crude and has latterly commenced purchasing US oil; it places community grades under a lot of pressure.
US oil production is surging and will hit 10.7 million bpd this year, emulating that of top producers Russia and Saudi Arabia. US reservoirs to Europe will hit through the roof atleast 550,000 bpd (around 2.2 million tons), according to the Thomson Reuters Eikon trade flows monitor.
Though the same data shows U.S. flows to Europe would keep on surging ahead with US barrels progressively discovering homes in remote refineries, many a times, at the cost of oil from OPEC or Russia.
In 2017 Europe apprehended round about 7 percent of U.S. crude exports, Reuter’s data portrayed but the percentage has already escalated to approximately 12 percent this year.