JP Morgan says OPEC+ needs to cut output by another 700,000 barrels/day in H2 & into 2024 | Forexlive

A note from analysts at JP Morgan on oil and OPEc+. Says the oil price has gotten away from OPEC+, due to added supply from producers outside its membership, and the cartel is going to have to cut production even further.

Main points:

• Supply growth outside of the OPEC+ cartel has paced global demand since the start of 2022
• Even this year, non-OPEC supply growth is expected to exceed that of global demand by 38%
• The bulk of added supply is coming from the Atlantic basin, the US is leading the way, followed by Brazil, Canada, Norway, Guyana and Argentina.
• Therefore OPEC will need to make additional cuts amounting to about 18% of the ones made so far in order to balance the market and regain pricing power, which equates to around 700k bbl/day from it and its allies (mainly Russia, of course)