Despite efforts by Saudi Arabia and Russia to prop up crude prices by cutting production, countries like Guyana, Brazil and the US have pumped more oil than ever.
That supply is now so strong that even if OPEC+ slashes more production, the spigot of oil from non-members will continue to douse the market.
“I think it’s more of a supply story going into 2024,” Rebecca Babin, senior equity trader for CIBC Private Wealth, told CNBC on Monday. “There’s a lot of fear that no matter what OPEC does, no matter how much they cut, there are producers — non-OPEC producers — that are just going to fill the hole they keep digging.”
She added, “We’re looking at 2024 and we’re concerned that the market is actually going to end up being oversupplied.”
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