Russia, Iraq and Kazakhstan to Reduce Oil Output in September
July 29, 2024
Energy prices closed lower on Friday and for the week mainly driven by oil and fuel demand concerns in China, ceasefire discussions between Israel and Hamas and 5 oil rigs coming online in the US.
Russia, Iraq, and Kazakhstan collectively said they would reduce their oil output by 2.284 million bpd by September 25th to make up for production of oil above their quota.
Goldman Sachs said that whoever wins the US presidential election in November will have limited tools to significantly increase domestic oil supply next year. It said Strategic Petroleum Reserve stocks are low and regulatory easing may only significantly increase US long-run supply. Goldman Sachs expects Brent prices to range from $75 per barrel to $90 per barrel in 2025, assuming trend-like growth in GDP and steady oil demand as well as market balancing by OPEC affiliates.