OPEC+ Goes for Voluntary Cuts and US Production at All-Time High

Dear Readers,

We would like to share with you our Daily Energy Report in which we discussed the highly anticipated OPEC+ meeting.

Chart of the Day: US Crude Production Hit a New Record in September  

Summary

The US EIA released its monthly data earlier today. It shows that US crude oil production increased to an all-time high of 13.236 mb/d in September. Figure (1) above shows US monthly crude oil production in 2023 vs. 2022, including the September data.

EOA’s Main Takeaway

This trend fits with our forecast that we published in early January in the EOA 2023 Oil Market Outlook. If this level continues until the end of the year, even without any increase, our forecast will be the best in the industry.

Story of the Day

OPEC+ Meeting Ends with NO Additional Cuts but Saudi Arabia and its allies announced Voluntary Cuts

Summary

OPEC+ as a group did not announce any additional cuts to its cuts that were announced in October 2022.

However, individual countries announced voluntary cuts on their own as shown in Figure (2). The total cuts until the time of this writing is 2.194 mb/d.  Most of these cuts are an extension of existing cuts. The Omani cuts are above their previous cut of 40 kb/d. Russia extended its cut of 300 kb/d of crude exports but added 200 kb/d of fuel oil exports.

EOA’s Main Takeaway