“They surely realize that additional gains in oil prices will unleash a new wave of production from North American shale formations that need higher prices to become competitive. The same is true for Canada's oil sands. This can create a new glut followed by a new race to the bottom,” he said.

Oil prices started their ascent with the production curtailment by “OPEC+” in late 2016, and now seem high compared to other industrial commodities. But still the fate of the OPEC and non-OPEC production cut deal remains a key issue in the global oil market in 2018.

As the OPEC tries to reduce output, concern that U.S. crude production will hit new records remains on investors’ minds. Yet experts argue that, OPEC and Russia will let oil prices climb as high as the market can bear.

Masaim Abdullayev,

“Khalq qazeti”