**: Global Market Broadcast.
While the Organization of the Petroleum Exporting Countries (OPEC+), led by Saudi Arabia, and its allies (OPEC+) continue to limit production to support oil prices, record U.S. production and growing exports make OPEC+'s task of defending oil prices particularly difficult.
In other words, the battle for global market share is heating up again.
On November 30, OPEC+ members agreed to voluntarily cut production by another 2.2 million b/d by the first quarter of 2024, a figure that includes the first 1 million b/d cut implemented by Saudi Arabia in July.
Matt Smith, chief analyst for the Americas at Kpler, said: "Saudi Arabia cut production significantly last year, which was reflected in a significant decline in exports. But on the other hand, as U.S. oil production hits record highs, U.S.** exports continue to rise gradually. As a result, the exports of the two have been approaching, especially in the last six months. ”
Matt Smith noted that at the start of 2022, Saudi Arabia exported about 7 million b/d, almost double the average daily volume of U.S. exports.
By December 2023, Saudi Arabia's exports had fallen below 6 million barrels per day, while the United States' exports were close to 4.5 million barrels per day, narrowing the gap to just 1.5 million barrels per day.
This is happening against the backdrop of heightened tensions in the Middle East.
Tensions in the Middle East have led to disruptions in the transportation of oil and other goods through the Red Sea. Iranian-backed Houthi rebels attacked ships on waterways, forcing carriers to halt shipments and reroute goods.
Some analysts said the disruption of shipping in the Red Sea could drive an increase in U.S. exports as buyers look to source cheaper oil from the U.S. The U.S. benchmark WTI*** is lower than the global benchmark Brent**.
The market share of Saudi Arabia and other OPEC+ members may be particularly worrying as weekly U.S. oil exports gradually approach record levels.
U.S. oil exports rose 137 percent in the week ended Dec. 29, according to the Energy Information Administration70,000 barrels per day, up to 52920,000 barrels per day, close to the all-time high.
According to EIA data since February 1991, the highest export volume record for the United States was set at 562 in the week ended February 24, 202390,000 barrels per day.