"There will be concern that prices could fall back to lower levels that wouldn't justify new capex," energy analyst Arjun Murti said, speaking of how traders and fund managers have left the crude markets recently due to market volatility.
In an effort to scale back its Russian oil imports, Germany is increasing crude imports from the U.S.
Big production increases are also expected in other major plays, including Eagle Ford, Bakken, Appalachia and Haynesville, the agency said.
"We are confident of our ability to ramp up to 12 MMbbl/d any time there is a need or a call from the government or from the ministry of energy to increase our production," Saudi Aramco CEO Amin Nasser said in regards to potentially raising its crude output.
Stratas Advisors anticipates continued oil price volatility due to macroeconomic and geopolitical uncertainties, as well as supply/demand fundamental fragility.
In April, the U.S. commissioned a tanker to impound Iranian oil off the coast of Greece.
On Aug. 11, a Shell-operated pipeline leaked approximately 2 bbl of oil into the U.S. Gulf of Mexico.
OPEC and the International Energy Agency (IEA) conflicting oil demand views, with OPEC cutting its world oil demand forecast and the IEA raising its demand growth forecast.
Both Brent, WTI fall 0.3% in early trading, though weekly increase recoup part of last week’s oil price declines.