Written by 23:51 News, Saudi Arabia

Amid Declining Investment, OPEC Lowers its Expectation for Non-OPEC+ Oil Supplies

Amid Declining Investment, OPEC Lowers its Expectation for Non-OPEC+ Oil Supplies

RIYADH: Citing weaker capital investment and growing market pressures, OPEC has trimmed its 2025 oil supply growth prediction from non-OPEC+ producers. In its monthly report on Wednesday, OPEC stated that it has revised its 2025 oil production forecast from nations outside the OPEC+ alliance from last month’s projection of 900,000 barrels per day to an increase of around 800,000 barrels per day.

Amid rising production from US shale and other non-member countries, OPEC+ which consists of OPEC members, Russia, and other allied producers, has had difficulty stabilising the market in recent years. If that increase slowed, OPEC+ would be able to better control supplies.

Additionally, the organisation stated that capital expenditures for oil production and exploration outside of OPEC+ are expected to drop by 5% in 2025. This comes after 2024 investment increased by $3 billion, bringing total spending to $299 billion.

“Despite the industry’s continued focus on efficiency and productivity improvements, the potential impact on production levels in 2025 and 2026 of the decline in upstream E&P oil investments will constitute a challenge,” the paper stated.

Although the US continues to be the primary driver of non-OPEC+ supply growth, OPEC has lowered its 2025 US output prediction, now projecting an increase of 300,000 barrels per day as opposed to the 400,000 barrels per day that was anticipated last month.

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