The Wall St Journal today announced that the Organization of the Petroleum Exporting Countries (OPEC) will start to ramp-up production at its June meeting, with the oil industry saying it expects output to reach 1.1 million barrels per day by the end of the year.
The Organization of Petroleum Exporters (OPEX) announced its June 2016 meeting in Vienna will start on Friday, June 6.
As of now, Saudi Arabia is expected to produce more than 1.8 million barrels of crude oil per day.
Saudi Arabia, the world’s biggest crude producer, has been the mainstay of the oil market since 2011, when the kingdom’s state-owned Oil Minister Mohammed al-Naimi said the kingdom would pump 1.3 million barrels a day from its offshore fields and the United Arab Emirates (UAE) to meet demand.
But production is expected a bit lower than that.
The Saudi government has cut its output to around 1 million barrels in the last two years as the kingdom grapples with the economic downturn and is now looking to the OPEC market to get back on its feet.
OPEC is expected at its meeting this week to announce its full production quotas and the final prices for the Brent crude oil, the most expensive and widely traded crude oil.
“Saudi Arabia is a key producer for the world oil market, but its output is not growing fast enough to satisfy the global demand that is driving up prices,” the Organization said in a statement.
Saudi Arabia, which has the world in its sights to be the world leader in oil production, is not alone in slowing its production growth.
According to the Oil Price Information Service (OPIS), the United States has the second largest oil reserves in the world behind Saudi Arabia at 4.4 million barrels.
Despite the sharp decline in oil prices, the United Kingdom is the largest producer of crude, producing 2.9 million barrels at the end and 3.1 per cent of the world.
The European Union has the third largest reserves at around 1.4 billion barrels.