However, based on its stagnating industrial production, fears are growing that actual demand is not keeping pace. The volume of crude oil imports by China, which has become the world's largest importer of crude oil, is stable at a high level (around 10 million barrels per day) and its volume of crude oil processing remains firm as well. There is little possibility that the global crude oil supply will rapidly increase as it did in 2018 and markets are closely watching the demand side. oil production, has reached 9 million barrels per day, but its growth has rapidly weakened. The production volume of shale oil, which drives U.S. Although the volume of oil produced by the United States has increased by at least one million barrels compared to 2018 and is at its highest level in history (at over 12 million barrels per day), the number of active oil rigs, which influences future oil production, has been constant since late-2019. ![]() The United States, however, which in 2018 again became the world's largest producer of oil for the first time in 45 years, has been increasing production at a faster rate than the reductions undertaken by OPEC-Plus. Because this agreement is based on a system of cooperation between Russia, which produces the second-largest volume of oil in the world, and Saudi Arabia, which produces the third-largest, its implementation is proceeding smoothly. ![]() In terms of the supply side, OPEC-Plus – made up of OPEC and non-OPEC major oil-producing countries, which endorsed its creation in July 2019 – has agreed to reduce production by 1.7 million barrels per day until March 2020. This is because demand for crude oil has fallen, primarily in terms of export fuel, due to stagnant automobile sales connected to the continuing trade conflict between the United States and China and the increasingly prevalent view that an oversupply situation is likely in the global crude oil market. ![]() The U.S.-based WTI crude oil futures price (WTI crude oil price) is remaining constant at a low level due to fears of a global economic slowdown. Senior fellow, RIETI The Weak Price of Crude Oil
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