Currently, the EIA expects total US crude oil production to average 9.3 million bpd for 2017 and 9.8 million bpd in 2018, which would mark the highest annual average production in USA history, surpassing the previous record of 9.6 million bpd from 1970. Saudi Arabia has cut November allocations by 560,000 barrels per day (bpd), in line with its commitment to an OPEC-led supply reduction pact.
Brent crude futures, the global benchmark for oil prices, were up 6 cents, or 0.1 percent, at $55.85 a barrel.
Brent crude futures, the International Benchmark for oil prices, were trading at 56 dollars 57 cents per barrel, down 4 cents, after closing 2 percent higher the previous day, while US West Texas Intermediate crude futures were trading 5 cents higher at 50 dollars 97 cents per barrel.
"It calls into question how committed Saudi Arabia is to those production cuts", said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
"Emerging from this most vicious of all oil cycles, the need to sustain the rebalanced market in the medium- to long-term, some extra-ordinary measures could be considered by countries participating in "the Declaration of Cooperation", including expanding the membership", Barkindo said in a speech at the India Energy Forum in New Delhi.
Federal U.S. data show total domestic crude oil production for the week ending September 29 at 9.5 million barrels per day, up more than 1 million barrels per day from the same period a year ago. At the moment, there is no talk of an extraordinary meeting beyond the session scheduled for next month in Vienna, he said.
"Oil prices are expected to remain at $50-55/b in the next year", Opec said.
For 2017, it forecast a rise of 380,000 bpd to 9.24 million bpd. Last month, it expected a 590,000 bpd year-over-year increase to 9.84 million bpd.
Speaking at the Reuters Global Commodities Summit, Vitol CEO Ian Taylor said US output would climb another 500,000 to 600,000 bpd next year before flattening. The U.S. Department of Energy reports official data on Thursday.
This is up from 83 percent initially reported in August, as September's rise in overall OPEC output was led by Nigeria and Libya, which are exempt from the cut. He said the picture was "not clear because you still have hurricane related news". United States crude inventories probably fell for a third straight week, while refined product stockpiles also likely declined, a preliminary Reuters poll showed on Tuesday.