Global oil fundamentals on the eve of Opec
After a year and a half of lower crude prices, there is little expectation that Opec, under pressure from dominant force Saudi Arabia, will change course at this week’s meeting.
While higher-cost members of the oil-producing group are feeling the pinch of oversupply, those urging a change in course will struggle to get a hearing. Saudi Arabia is determined to continue producing oil at a high rate to defend its market share against competitors.
But next year Opec — and non-Opec producers — will face Iran’s emergence from the shadow of international sanctions, potentially adding to oversupply.
Opec ministers will meet in Vienna on 4 December.
See how rising demand has been outweighed by rising supply while lower prices have squeezed US oil rig operations over the past 18 months in the below infographic.
Register your details for the new Argus webinar — The state of the Opec nations’ — which will be released on 2 December.