The level of crude output from the U.S. will once again be a major factor this year, the International Energy Agency (IEA) said its closely-watched report on Friday, with the energy giant on track to reaffirm its position as the world's leading crude producer.
The IEA report comes shortly after OPEC and non-OPEC producers officially implemented a fresh round of supply cuts.
Alongside Russia and nine other nations, top oil exporter Saudi Arabia struck a deal with the rest of OPEC in December to keep 1.2 million barrels per day (b/d) off the market from the start of January.
"While the other two giants voluntarily cut output, the U.S., already the biggest liquids supplier, will reinforce its leadership as the world's number one crude producer," the Paris-based IEA said Friday.
"By the middle of the year, U.S. crude output will probably be more than the capacity of either Saudi Arabia or Russia."
Brent crude has fallen almost 30 percent since climbing to a peak of $86.29 in early October last year, while WTI is down more than 31 percent over the same period.
The collapse in oil prices was exacerbated by concerns about oversupply, as well as a stock market slump amid worries over rising U.S. interest rates.
That prompted OPEC and non-OPEC producers to throttle back output at the start of 2019, in an effort to try to put a floor under falling oil prices.