The price of crude oil is starting to stabilize despite increased production, according to an industry insider.
Kyle Cooper, the managing partner at Houston-based IAF Advisors and Criterion Research, appeared Tuesday on CNBC to give is expert outlook on the energy market.
Currently, the US rig count stands at 659 with only one rig cut by drillers last week. In 2014 at this time, the rig count was 1,528. “U.S. oil producers started to get more and more with less and less,” according to Cooper.
The US Energy Information Administration (EIA) reports that US oil production was higher last week than the same week a year ago.
Although crude production has been high based on current trends, it hasn’t affected prices much Cooper believes.
West Texas Intermediate (WTI) fell slightly to $57.58 Wednesday after concerns of shale producers increasing drilling.
According to Goldman Sachs, if crude oil prices stay around $60 per barrel, drilling activity may increase by producers.
OPEC supply along with a dollar rally and a production increase could combine to produce turmoil against an oil price rise, according to the investment bank.