Surging US Oil from Efficient Fracking Is Forcing More OPEC Cuts

Iraq, Kuwait, the United Arab Emirates, Russia and Saudi Arabia will extend an OPEC agreement for oil production cuts for another six months. OPEC recently agreed to a six month 1.2 million barrel per day oil production cut.

OPEC is trying to clear the oil markets of extra oil inventories and over-production.

There is weakening global economic growth and surging US oil supply.

Oil future prices dropped 11 percent last week. Brent crude traded below $54 a barrel which the lowest since September 2017.

US Oil production has the capability of increasing production by 4 million barrels per day over the next three years.