Oil Prices Will Recover in Anticipation of OPEC and Non-OPEC Production Cuts

The production cuts would help in surging the crude oil prices, thereby creating the demand for drilling fluid in future

United States: The prices of crude oil in multiple stock exchanges moved slow in the anticipation of production cuts by OPEC and Non-OPEC members. Major trading houses in Asia are also anticipating the production cuts. International Brent Crude Futures were trading at USD55.96 On 27December 2016. The members of the OPEC and Non-OPEC may reduce the production of crude oil by 1.8 billion barrel per day and the deal is expected to be initiated by January 1, 2017. Saudi Arabia may opt for highest production cuts. Venezuela is also expected to reduce the oil production by 95,000 billion barrels per day.

TechSci Research finds out the reduction of crude oil production by the OPEC and Non-Open nations would help in recover the prices of crude oil. Due to the falling crude oil prices, the oil & gas industry was facing several challenges. The stabilization of crude oil prices because of production cuts would improve the revenue of oil & gas companies across the world. The improved financials of oil & gas firms would encourage them to invest in more exploratory activities. This would boost the drilling fluid market globally.

According to released report of TechSci Research “Global Drilling Fluids Market By Type, By Application, By Region, Competition Forecast & Opportunities, 2011 - 2021”, the global market for drilling fluids is forecast to grow at a CAGR of over 8% during 2016-2021, on account of anticipated increase in oil & gas drilling activities. In 2015, North America dominated demand for drilling fluids across the globe, followed by Asia-Pacific. Moreover, water based drilling fluids dominated global drilling fluids market, due to their environment friendly properties and cost effectiveness.