How can Opec+ face up to the oil market’s glut?

Mr. Choeib Boutamine

January 10, 2025

Speaking to CNBC, Mr. Choeib Boutamine, CEO of Ranadrill Energy, said Electric Vehicle production increased in China by 34% in 2024 (i.e. 9.7 million EVs in 2024 only) compared to the previous year, decreasing the country’s demand for oil and contributing to the glut in the oil market.

India cannot compensate for China’s oil demand, as the latter consumes about three times more oil, approximately 16 million barrels compared to India’s 5.4 million barrels.

Meanwhile, with the election of US President-elect Donald Trump, oil and gas production is expected to boom in the USA, in addition to other countries who are following suit, notably Nigeria, Libya, Guyana, and Argentina.

 OPEC+ has been cutting production by 5.86 million barrels per day. In the last couple of years, OPEC+ has been able to control the oil market, but that’s no longer the case due to the global surplus in oil production.

The solution for OPEC+ to maintain its position and influence in the oil market in the long term is to recover its market share.