The U.S. is slowing surging forward to being a top exporter in crude oil.
Saudi Arabia has been the top exporter of crude oil for very long. But of late, production has been cut in all the OPEC countries to bring up crude prices, which took a beating caused by a supply glut.
The U.S. has been consistent in producing crude in large quantities. It has been the highest producer of oil in 2018. It is expected that the U.S. will soon become the highest exporter of crude oil in five years from now. This data has been released by the International Energy Agency.
Forecasts by IEA mentions that crude exports will almost double and reach 9 million bpd by the years 2024. By this production, the U.S. will soon replace Saudi Arabia in being the top exporter of crude oil.
Further, there were reports that the U.S. is exporting crude oil by a quantity of 3.6 million barrels per day. The IEA further says that the country exports other petroleum products like gasoline in large quantities.
The shale fields in the U.S. have contributed to the surge in its exports says IEA. The five-year oil outlook released by the IEA says that crude production which is already at record levels of 12 million barrels per day will grow further by 4 million barrels per day by the end of 2024.
With this record output, other large producers like Saudi Arabia and Russia will soon lose their position as top exporters of crude and may lose their market share in the oil market.
The OPEC + countries have come forward as an alliance to bring down the total supply in the oil market and to curb the price decline of crude oil.
This high production level from the U.S. will also be able to erase the deficit brought in by the sanctions imposed on Venezuela and Iran.