November 15, 2023 11:00 GMT
Saudi Arabia Likely to Extend 1mbpd Output Cut into 2024: Amrita Sen
Saudi Arabia is expected to extend its voluntary 1mbpd output cut into the first quarter of next year, if not to the first half of the year, Amrita Sen, Co-Founder of Energy Aspects, said.
- Current oil prices are not low enough for OPEC+ to deepen supply cuts in 2024, Sen said.
- “The problem still remains the underlying dichotomy with US policies.” Sen said, referring to US sanctions.
- The US has lifted sanctions on Venezuela, which is expected to improve heavy oil supplies to the US and Europe at the expense of China, while oil from Russia and Iran continued to be exported, despite sanctions.
- “They do want to reduce revenues for Russia without disrupting flows,” she added.
- Iran’s crude oil production in the meantime has gone up by 600kbpd, sending record volumes of oil to China, she added.
- The next OPEC+ ministerial meeting will be held on 26 November in Vienna.