(Energy Analytics Institute, 4.Oct.2024) — Saudi Arabia looks to add around 1 MMb/d of production over the next 12-15 months to reach close to 10 MMb/d by the end of 2025, according to a recent Opec report.
The production increase is part of a plan by the Kingdom to stop ceding market share at the cost of not pursuing a $100 per barrel oil price that it needs to balance its budget, analysts tell Energy Analytics Institute (EAI).
And it’s not just the Kingdom that has plans to boost oil production over the same time frame.
Saudi Arabia, the world’s largest oil exporter, will be joined by seven other members of Opec+ — Algeria, Iraq, Kuwait, the United Arab Emirates (UAE), Kazakhstan, Oman and Russia, according to the Opec report.
All summed, the 8 countries look to boost production by 2.5 MMb/d by year-end 2025.
This production increase has potential to negatively impact on global oil prices (WTI and Brent). And, this will consequently pressure U.S. shale producers, according to Paris-based International Energy Agency (IEA).
____________________
By Aaron Simonsky. © Energy Analytics Institute (EAI). All Rights Reserved.
