Posted 1/17/2024, 12:41:34 PM
OPEC Faces Pressure to Cut Output Further as Demand Growth Slows and US Production Surges
- OPEC may need additional production cuts to balance oil market due to slowing demand growth and record high US output
- US oil production underestimated last year but expected to slow due to industry consolidation and cost reduction
- Global and Chinese oil demand growing slower than expected, only by 1.5 million bpd this year
- Mercuria CEO says Saudis may need further production cuts if they want to control oil prices
- OPEC has so far exceeded announced production cuts, but compliance crucial given slower demand growth