The US is expected to lead fast-rising oil production in non-OPEC countries this year, which is likely to see supply grow by more than demand.
That’s according to the International Energy Agency (IEA), which says US crude output increased by a “colossal” 846,000 barrels a day in the three months leading up to November.
It expects US production will soon overtake that of Saudi Arabia and by the end of this year, could also exceed Russian output to become the global leader.
The IEA says all indicators for continued fast growth in the US are in alignment, with rising prices leading to more drilling, completions, production and hedging.
Its global demand growth estimate for 2017 remains strong at 1.6 million barrels a day.
The organisation suggests a lot could change on the global market in the next few months, with the apparent buoyancy of the global economy potentially delivering higher demand growth than currently anticipated.
As a result, prices could be maintained at recent levels even as US production rises.