The hottest OPEC high-yield strategy has not yet d

2022-09-21
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OPEC's high-yield strategy has not defeated the tenacious resistance of its rivals, which may exacerbate the decline in oil prices

OPEC's high-yield strategy has not defeated the tenacious resistance of its rivals, which may exacerbate the decline in oil prices

August 13, 2015

[China paint information] the organization of Petroleum Exporting Countries (OPEC) raised its supply expectations for non OPEC oil producing countries in 2015 on Tuesday (August 11), suggesting that the current decline in oil prices is not enough to defeat us shale oil producers and other major competitors

in the monthly report released today, OPEC did not increase the market demand for its crude oil, as the higher than expected crude oil production of the United States and other major competitors offset the increase in market demand

although the Brent crude oil futures price is currently maintained below $50/barrel, close to the low level in 2015, with a cumulative decline of 18% in July, OPEC still refuses to reduce production because it does not want to hand over its market share to competitors

at the beginning of this year, OPEC thought that the decline in oil prices would force non OPEC oil producing countries to reduce production, but this report shows that OPEC predicts that the average daily production of non OPEC oil producing countries will increase by 90000 barrels in 2015

After opeplastic was extruded from the die, C pointed out: "the onshore production of non-traditional sources in the United States is currently expected to decline slightly from the second half of the year to the end of the year, while the offshore production of the United States is expected to grow, as the project is put into production."

U.S. energy companies recently ignored the decline in oil prices and continued to increase the number of active wells. OPEC raised the average daily production forecast of the United States this year by 20000 barrels. In March, OPEC had expected US crude oil production to decline

ihs analyst Jamie Webster said, "OPEC has begun to face up to the tenacious resistance of American shale oil producers."

the biggest reason why non OPEC oil producing countries can continue to maintain competitiveness is the decline of oil production costs

Samuel Ciszuk, senior consultant of supply security of Swedish ene (Swedish Energy Agency), said: "OPEC should re-examine the affordability of non OPEC oil producing countries to low oil prices."

opec's monthly report indicates that the organization's average daily crude oil production in July was 31.51 million barrels, an increase of 1 compared with the preset target. It is necessary to close the rat guard in time for about 1.5 million barrels. OPEC also maintained the market demand forecast of its own crude oil in 20154 and data collection system at 29.23 million barrels per day, and believed that if the crude oil production remained at the level of July, the global excess demand daily average production would be 2.28 million barrels. Saudi Arabia's average daily production decreased by 200000 barrels to 10.36 million barrels in July

although some OPEC member states, such as Algeria, hope that the organization can implement the production reduction, the Gulf member states have expressed opposition and believe that there will be no emergency meeting to discuss the production reduction requirements before December 4

in this report, OPEC insisted that the growth of domestic production of non OPEC oil will slow down significantly next year, and at the same time, global demand will pick up and absorb additional production, pointing out that "the demand for crude oil will continue to rise in the coming months, which will gradually consume additional production and make the market supply and demand more balanced."

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