Saudi Arabia and Russia Aren’t Feeling OPEC’s Market-Share Pain
- OPEC has lowest share of global oil market since 1991
- Most of the impact is falling on Iran and Venezuela, SEB says
Khalid Al-Falih arrives for the 15th Joint Ministerial Monitoring Committee (JMMC) meeting in Vienna on July 1.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
OPEC may be losing its share of the global oil market, but not all losses are spread equally.
Though the producer group’s portion of the market is now its lowest in almost 30 years, nearly all the pain is being inflicted on Venezuela and Iran, says Bjarne Schieldrop, chief commodities analyst at SEB AB. The Latin American country’s output is in free-fall under the Maduro government, while Iran’s supplies are being hit by U.S. sanctions. At the same time, Saudi Arabia is only producing marginally below its average level for the previous four years, while Russia is higher than that, according to Schieldrop.