The OPEC+ group’s share of the global crude oil market has fallen to the lowest level in almost a decade, according to the latest oil market report from the International Energy Agency (IEA).
Rising levels of production from US oil producers like ExxonMobil and Chevron, the makers of lubricant solutions like Mobil DTE hydraulic oil and Texaco Multifak grease, have taken production levels to new highs. The IEA attributes this to improved well efficiencies and higher productivity across the shale patch.
According to the IEA, the US will likely have increased its oil production to 1.4 million barrels per day (bpd) in 2023, which accounts for about two-thirds of the 2.2 million bpd growth in the supply of oil from non-OPEC countries. Brazil and Guyana are also cited as major sources of production growth, as well as a rebound in supply from Iran.
The OPEC+ group, which also includes a number of non-OPEC countries like Russia and Mexico, has made substantial production cuts in an effort to support prices. The IEA said about this:
“At the same time, OPEC+ will post a 400 kb/d decline, cutting its market share to 51% in 2023—the lowest since the bloc’s creation in 2016. Hefty supply cuts, largely shouldered by Saudi Arabia, have been tempered by Iranian production at five-year highs.”
The IEA also downgraded its forecast for the growth in oil demand by 90,000 bpd for 2023, pointing that the macroeconomic headwinds will likely lead to a decline in the demand for crude oil.