US counts on trio to offset OPEC+ production reductions
Shafaq News/ The US Energy Information Administration (EIA) projects that Guyana, Canada, and Brazil will significantly contribute to the near-term global oil production growth, potentially offsetting the voluntary output reductions by the OPEC+ group.
Following the Organization of the Petroleum Exporting Countries OPEC and its allies' decision to prolong the voluntary cutback of 2.2 million barrels per day, there's an anticipation of a surge in supplies aimed at bolstering market prices.
However, this increase from non-OPEC+ producers might challenge the coalition's objective of stabilizing the oil market, especially with the rising concerns over global demand and supply escalation.
The United States, Canada, Brazil, and Guyana are poised to deliver over 80% of the anticipated global supply increase, according to the EIA's current projections.
The EIA forecasts a decrease in OPEC+ refined oil product output by one million barrels daily in 2024, while non-member nations, spearheaded by the US, are expected to augment their supplies by 1.4 million barrels daily.
By 2025, as the agreed production curtailments conclude, OPEC+ is set to boost its oil product output by 900,000 barrels daily. Concurrently, external OPEC+ production is projected to expand by an additional 1.1 million barrels daily.
The EIA reports that the worldwide supply of oil and refined products stood at 101.8 million barrels daily in 2023, with projections indicating an increase of 400,000 barrels daily in 2024, and a substantial rise of two million barrels daily by 2025.
In 2023, the US oil production reached 13.3 million barrels per day, with growth expectations of 400,000 barrels daily for the current year and an increase of 800,000 barrels daily by 2025.
