US oil production passes peak
During the last decades, the US has been the world's superpower that may easily take the leading position in any competition. Sometimes, it looks like the US wants to try its hand at various conflicts.
The recent oil price war is one of such examples. The US has always been one of the largest oil producers. However, this time, it failed to be among the leaders. Nevertheless, it still wants to manifest its power.
In short time, the US production hit the record high of 13 million barrels a day. Oil output has not been at such levels since last autumn. Other oil leaders such as Saudi Arabia and Russia did not produce so much oil even before the OPEC+ deals.
However, there is no use to reduce output under the current oil market conditions. Matt Gallagher, chief executive of Parsley Energy, one of Texas’s biggest independent oil producers, said that the US crude production had already peaked. At the same time, the market does need a lot of oil until prices resume rising.
Production of oil brings profit to most US companies only if prices exceed $40 per barrel. Thus, as soon as oil prices hit this level, US companies will resume large-scale production as they do not have obligations to contain it.