US turns into 'oil nation' with record exports, 'eating' OPEC market share
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The U.S. exported a record amount of crude oil, topping a million barrels a day for a second week and filling the gap in world markets created by OPEC cutbacks.
Shale and other U.S. producers sent 1.2 million barrels of crude oil onto world markets last week, up nearly 200,000 barrels a day from the week earlier and about 350,000 barrels above the four-week average, according to Energy Information Administration data. Until recently, the U.S. was exporting about 500,000 barrels a day.
"OPEC's got a competitor. No doubt about it," said Kyle Cooper, a consultant with Ion Energy Group. "They certainly have to be concerned with U.S. oil producers eating into their market share."
U.S. producers have also ramped up production to 9 million barrels a day last week, a level last seen in April 2016. The new production is increasing even as the U.S stockpiles continue to grow. According to EIA, oil supplies grew for a seventh week, adding a smaller than expected 564,000 barrels.
"OPEC is definitely looking over its shoulder at these rising numbers of exports, and it's undermining their efforts on a daily basis," said John Kilduff of Again Capital. "Some of it's going to Asia. China is one of the more unusual buyers in there. The shale guys are filling the gap of the very cuts that were put in place by the market."
The Oil Producing and Export Countries and non-OPEC producers, like Russia, agreed to cut about 1.8 million barrels a day from the world market in an effort to stabilize oil prices..................
....................."We are an oil nation now. We are a petroleum state," said Kilduff. "You have to see how far down our shale producers can drive down their costs. It's hard to see them competitive with the likes of Saudi Arabia, but they are competitive with some other countries."
The U.S. exports alone totaled more than the production of a number of OPEC countries, like Algeria, Libya, Gabon, Qatar and Ecuador, according to Andrew Lipow, president of Lipow Oil Associates................