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OIL: OPEC has Little Room to Revive Oil Supply: Iran Official

OIL
Bullet

OPEC+ has little scope to reverse its oil production cuts, which have triggered a wave of rival supply from US shale producers, Iran’s OPEC representative said, cited by Bloomberg.

  • “This strategy in support of prices has effectively encouraged higher supply outside the group, particularly on the part of the US,” Iranian OPEC governor Afshin Javan said in an article on state-run news agency Shana.
  • “That would leave a limited room for manoeuvring by OPEC+ to ease its restrictions.”
  • OPEC+’s scheduled supply increases are “likely to bring about oversupply in 2025,” Javan warned.
  • He added that production cuts by OPEC+ since 2020 have financed a surge in US shale production, which is up by 2m b/d over that period.
  • The demand side is also tricky, with ‘bleak economic prospects’ from China, Javan said.
  • “In the current year, demand for OPEC’s crude oil is likely to decline,” he wrote, contrasting OPEC’s official projections.
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OPEC+ has little scope to reverse its oil production cuts, which have triggered a wave of rival supply from US shale producers, Iran’s OPEC representative said, cited by Bloomberg.

  • “This strategy in support of prices has effectively encouraged higher supply outside the group, particularly on the part of the US,” Iranian OPEC governor Afshin Javan said in an article on state-run news agency Shana.
  • “That would leave a limited room for manoeuvring by OPEC+ to ease its restrictions.”
  • OPEC+’s scheduled supply increases are “likely to bring about oversupply in 2025,” Javan warned.
  • He added that production cuts by OPEC+ since 2020 have financed a surge in US shale production, which is up by 2m b/d over that period.
  • The demand side is also tricky, with ‘bleak economic prospects’ from China, Javan said.
  • “In the current year, demand for OPEC’s crude oil is likely to decline,” he wrote, contrasting OPEC’s official projections.