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.