Posted 1/9/2024, 12:00:00 PM
U.S. Oil Production Surging, Pressuring OPEC+ to Cut Output Despite Iran, Brazil Additions
- U.S. oil production and exports hitting record highs, narrowing gap with Saudi Arabia's exports from over 3 million bpd at the start of 2022 to just 1.5 million bpd currently
- Saudi Arabia and OPEC+ agreeing to additional production cuts to support prices, but facing surprising efficiency/productivity gains in U.S. output
- Iran also materially increasing oil production outside of OPEC+ quotas, up 50% since August 2021
- Saudi Arabia cutting oil prices to Asia by up to $2/barrel, partly to regain market share lost to U.S. and other rivals
- Brazil joining OPEC+ in January, but unlikely to impact production/quotas in near-term; could be first step for OPEC+ to gain more supply influence