OPEC+ Supply Cut Opens Door to Battle Over Asia’s Oil Demand
- Group has sent bulk of crude flows to Asia in recent years
- Share of OPEC+ oil bound for the US has dropped since 2017
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A surprise cut in oil production from OPEC+ is now setting the stage for other producers to vie for markets in Asia.
Since the Organization of Petroleum Exporting Countries started managing supplies more actively in 2017, member states have privileged flows to Asia at the expense of countries like the US. Last year, 70% of oil from the group went to Asian countries including China and India, up from 61% in 2017. Meanwhile, the share bound to the US shrank to 6% from 10%, data from market intelligence firm Kpler SAS show.