"If (as expected) US shale production continues to increase during 2018, then exports will flow", Sandy Fielden, director of oil and products research at Morningstar, wrote in a research note.
Rebounding stock prices on Wall Street helped crude futures bounce off the day's lows, as stocks and oil futures have been more highly correlated in recent weeks.
While U.S. West Texas Intermediate crude oil in last April reduced 5 cents to $63.50 per barrel after elevating by 3 percent preceding week.
But while the Brent-WTI spread jumped over $7 per barrel between September and December, it has sharply narrowed more recently.
USA output was 10.27 million barrels per day (bpd), according to government data released on Thursday, higher than the latest figures for the world's largest exporter Saudi Arabia and just below Russian Federation.
Oil fell more than 1 percent on Thursday, hitting two-week lows on pressure from a strong dollar and worries that surging USA crude output might thwart OPEC's efforts to drain global supply.
Papua New Guinea hit by 7.5 magnitude quake
Part of PNG's northern coast was devastated in 1998 by a tsunami, generated by a 7.0 quake, which killed about 2,200 people. Papua New Guinea is located on the eastern half of the island of New Guinea, to the east of Indonesia.
On 1 January 2017, after nearly a year of shuttle diplomacy, OPEC and non-OPEC producers reached their first deal since 2001 to reduce oil output jointly by nearly 1.8 million barrels a day.
Observers have noted that should the US exceed these production levels, it could potentially overtake Saudi Arabia and Russian Federation to become the world's top crude oil producer.
OIl prices as of 11:59 a.m. However, there's even more oil, and more supply is expected ahead.
Most of the drawdown has come from the liquidation of bullish long positions rather than the establishment of new bearish short ones and it has been proportionately greater in fuels rather than crude.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: Russia vs Saudi vs USA oil production http://reut.rs/2EIuTWS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^. Prices on Friday rose 78 cents, or 1.2%, to settle at $63.55, the highest in more than two weeks. "If those numbers change consistently to the upside, we would see the market react in the other direction". Crude stocks at the Cushing, Oklahoma, delivery hub for USA futures USOICC=ECI fell 2.7 million barrels last week.
"We need to add 15 million barrels daily by 2040 to meet demand", he added, putting the needed investment at $10.5 trillion.
Birol said at an event in Tokyo the USA would overtake Russian Federation as the biggest crude oil producer "definitely next year", if not this year.