US is set to lose its spot as world's top oil producer, energy experts say - CNBC
|The US is likely to lose its spot as world's top oil producer this year as budgets have been slashed and capital investments have been put on hold in America's shale country in the wake of the massive price slide and the sheer destruction of demand brought on by the coronavirus outbreak across the globe.
The US was a top oil producer globally in 2018, courtesy of the shale oil boom.
Key quotes
“If we continue where we are with these low prices, we’ll see a big decline in U.S. oil production. It will no longer be number one,” Dan Yergin, energy expert and vice chairman of IHS Markit, told CNBC’s “Capital Connection” on Monday.
"We see in this coming month of April what could be a 20 million barrel a day decline in oil demand. It’s unprecedented. That’s six times larger than the biggest downturn during the financial crisis period," Yergin said.
WTI oil tumbled to an 18-year low of $21.80 per barrel on Monday and Brent oil slipped to $21.68 per barrel. Oil benchmarks are currently down 54 percent on a month-to-date basis.
Saudi Arabia earlier this month slashed its crude prices for Asian clients, reversing course from supporting price via output cuts in a bid to capture greater market share. Russia too followed suit, adding to bearish pressures around prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.