Oil production outside the countries of OPEC oil cartel is about to collapse. According to the International Energy Agency (IEA), production in the United States in particular is falling faster than expected, a monthly report reported.
Non-OPEC production declined by 1.1 million barrels per day in April compared to the previous year. The month of May is getting worse. According to IEA, there will be a daily production drop of 6.7 million barrels per day from March to June.
Low oil prices force producers to close oil wells. Oil extraction in the US is currently in the lowest gear since 2009. Shale extraction in particular is not profitable.
U.S. production will drop by 1.2 million barrels per day in May, according to the IEA. By the end of the year, production could be 2.8 million barrels a day less than a year earlier. Russia faces a decline in production in this year’s closing quarter by 1.3 million barrels a day. Production in Canada is also under pressure.