Bloomberg: The superiority of "OPEC+" is increasing with the decline in competitors in the oil market

The “OPEC+” coalition has faced financial damage as a result of its ambitious strategy to restore its share in the oil market, but this step can deliver future profits in the long run. In new data, Wood McKinsey Consultant Energy affairs estimates that the growth of oil supplies from the outside Opec – the leadership of countries such as Brazil, Canada and Genoa – will fall between the current year and 2027 by more than 80% to approach the full stop by that year. In the same context, the Norwegian company “Rystad Energy” has reduced its expectations in recent months. OPEC supplies increased the sudden decision of Saudi Arabia four months ago to direct “OPEC” to increase production, which led to low prices, which reduced the revenue of the state and expanded the budget deficit, although the weight of these consequences has been relatively illuminated in recent months. The OPEC+delegate referred to a set of motives behind the change of strategy, of which Riyadh’s quest is to restore its market share, which applied to competitors such as shale oil producers in the United States. Recent expectations of analysis institutions show that producers can achieve their goal if they meet this approach. The group is expected to hold its next meeting to review production levels on Sunday. 2027 .. The year “OPEC+” said Jorge Leon, an analyst at Restad Company and former Employee of the Amana “Opec”: “For the OPEC+Alliance, the glitter of hope in 2027 blows, when the growth of supplies from the outside (OPEC) or outside (OPEC+) in a very sharp rate.” The slowdown of supplies from outside “OPEC” is due to the decline in the expected production in North America after 2025, in addition to the oil fields in Mexico, China and Norway, which led to a gradual decline in the production of the reserves of Anne-Loues, Deputy Head of the Department of Oil Markets at Wood McKinsey. The oil production road is still the “OPEC” production road over the next few years, characterized by some uncertainty, as the International Energy Agency in June expected the demand for the oil’s oil from next year to 2029, despite the ‘OPEC’ that retains a surplus map that may be in use if necessary. It is too early to determine whether Saudi Arabia will be able to adapt to any possible decline in prices that may result from this step that organizes some risks. Oil market traders also expect rough prices to fall later this year, with more supplies pumping from the ‘OPEC+’ pump, which mainly deepens the existing surplus due to poor Chinese demand and US supplies. About a decade, Riyadh launched a war war against US shale oil companies, but it quickly abandoned it after 18 months, after it was found that the financial consequences were expensive.