LONDON - OPEC’s share of the global oil market has sunk to 30%, the lowest in years, as a result of supply restraint and involuntary losses in Iran and Venezuela, and there is little sign yet producers are wavering on their output-cut strategy.
The decline in prices, should it persist, and erosion of market share could raise the question of whether continued supply restraint is serving producers’ best interests.The group tried to defend its market share under the previous Saudi oil minister, Ali al Naimi, who sharply ramped up production in a pump war campaign in 2014.
“Saudi Arabia is committed to do whatever it takes to keep the market balanced next year,” a Saudi official said on Aug. 8. “We believe, based on close communication with key OPEC+ countries, that they will do the same.” Venezuela and Iran, under U.S. sanctions and being forced to curb shipments, have delivered the bulk of the cuts. Venezuelan supply was already in long-term decline before Washington tightened sanctions this year.
This is a big deal and we probably won’t hear about it today on any major TV news outlet...