Tougher days are ahead for OPEC and Iran
OPEC Plus has officially lowered its forecast for global oil demand growth
This amount is estimated to be slightly over 2 million barrels for the current year
OPEC member oil exporters and their partners have not yet started the agreed reduction process from October, and contrary to their intended trend, the production and exports of member countries are increasing. The U.S. Department of Energy and the International Energy Agency both envision different outlooks regarding oil demand growth, naturally based on the growth of non-OPEC countries’ production and the capabilities of powerful producers in the Western Hemisphere.
Canadian oil production has reached a high level of export capability, and along with the oil produced by American companies in Guyana and the growing trend of Brazilian oil exports, it will further saturate the market. A day after the release of the new OPEC Plus report, a special report on the high capabilities of American oil companies was published.
These companies have achieved new successes in optimizing the use of available resources and maximizing extraction from drilled oil wells.
In contrast to OPEC’s intention to reduce production, new estimates indicate an increase of up to half a million barrels per day in the U.S., which is two hundred thousand barrels beyond the target set by the government’s goal. This makes the target of oil above eighty dollars per barrel and maintaining a price floor of eighty to ninety dollars without international crises and creating unrest in the energy market very challenging.
The further saturation of the oil market and the strengthening of non-OPEC producers is a serious warning for Iran, which is losing the people’s assets by selling cheaply and handing over the country’s oil to brokers.