SINGAPORE: Saudi Arabia, the world’s largest oil exporter, is expected to extend additional voluntary supply cuts until at least the first quarter of 2024, if not the first half of 2024, Amrita Sen, co-founder of consultancy Energy Aspects, said on Wednesday.
Current oil prices are not low enough to push the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to deepen supply cuts in 2024, he said, adding that market fundamentals are not weak enough to warrant this.
The next OPEC+ ministerial meeting will be held on November 26 to discuss the market outlook.
Brent prices fell to just under $82 a barrel on Wednesday on concerns about economic growth and demand despite support from supply cuts by OPEC and its allies and conflicts in the Middle East.
OPEC says oil market remains strong despite negative weather
The International Energy Agency (IEA) on Tuesday raised its oil demand growth forecasts for this year and next despite slow economic growth in nearly all major economies.
While Washington lifted sanctions against Venezuela, which was expected to increase heavy oil supplies to the United States and Europe at the expense of China, oil continued to be exported from Russia and Iran despite the sanctions.
“The issue remains the dilemma at the core of US policies,” Sen said at the FT Asia Commodities Summit in Singapore.
“They want to reduce Russia’s revenues without disrupting flows.”
The U.S. Treasury Department on Friday sent a notice to ship management companies seeking information on 100 ships it suspects were violating Western sanctions on Russian oil, Reuters reported on Monday.
The move represents the biggest step taken by the United States since Washington and its allies imposed price caps to restrict oil revenues in response to Moscow’s invasion of Ukraine.
Senator from Energy Aspects said Iran’s production increased by about 600,000 barrels per day. OPEC producer is exporting record amounts of oil to China.
news source (www.brecorder.com)