Countries by Oil Production: Oil Market Trends and Predictions for 2017
The global oil market has had its ups and downs throughout the years, and 2016 has been no different. Even with low oil prices, production rates in various countries seem to be increasing. So which countries are producing the most oil, and what does this mean for the oil market in 2017?
Top Oil Producers by Country
Throughout the years, countries like the United States, China, Russia, and Saudi Arabia have been named the world’s biggest oil-producing countries.
In 2015, the United States was the top oil producer in the world followed by Saudi Arabia, Russia, China, and Canada. Below is how many barrels per day each country produced in 2015, according to the US Energy Information Administration.
- United States: 15,044 thousand
- Saudi Arabia: 11,949 thousand
- Russia: 11,030 thousand
- China: 4,722 thousand
- Canada: 4,506 thousand
On top of that, all five of these countries were listed in the top 10 oil producers in the first three months of 2016, according to CNN Money.
Oil Market Trend and Predictions for 2017
Currently, the oil industry is booming. With several new plants and more countries contributing to the global oil supply, the world has more than enough to meet consumer demands. But many don’t consider that to be good news.
A monthly report by International Energy Agency (IEA) stated that global oil demand growth is waning, which means an oversupply will be expected in 2017. “Our forecast in this month’s report suggests that this supply-demand dynamic may not change significantly in the coming months. Thus, supply will continue to outpace demand at least through the first half of next year,” the IEA said in a Reuters article.
The IEA’s report also stated that crude oil prices will rise, though not by much. Overall, they expect the price of oil to increase by only about 50 cents per barrel in the United States.
In terms of production, global refineries have no signs of slowing down. In fact, The Wall Street Journal reported that countries like the United States, Norway, and Russia will produce more than 190,000 barrels per day in 2017.
On top of that, they reported that global production will be at an average of 760,000 barrels per day. This about three times higher than predictions recorded just last month.
What Does This Mean for Consumers?
Based on the market trends, consumers are likely see some benefits in 2017. For example, the global oil glut will carry into the new year, and the slight projected increase in oil prices will mean gas prices will continue to be as low as they are now in 2017.
For more industry predictions, check our post on New Threats that the Oil Tanker Business Could Face in 2017.