The stage has been prepared for other producers to compete for markets in Asia following an unexpected reduction in oil supply from OPEC+. Since the Organization of Petroleum Exporting Countries began actively controlling supplies in 2017, member states have given flows to Asia preferential treatment at the expense of nations like the U.S.
China and India received 70% of the oil produced by the company last year, up from 61% in 2017. According to market intelligence firm Kpler SAS’s statistics, the portion headed for the U.S. decreased from 10% to 6%.
American exporters may view the most recent OPEC+ action as their chance to improve their market share in Asia since U.S. oil output has also increased at that time. The increased production from shale formations was a major factor in the U.S. output increase. The processing of lighter crude grades, which are often pumped from regions like the Permian and Eagle Ford, has increased at American refineries.
Over the past ten years, American production has increased from 41% to 63% of the oil that U.S. refineries process. During the peak of the summer driving season in July, deliveries arriving in the U.S. are likely to be affected by the anticipated supply reduction from OPEC+. American consumers have till then to begin exploring other options.
