OPEC and allied oil producers including Russia ended their meeting in Algeria on Sunday with no formal recommendation for any additional supply boost.
According to Reuters, Oman’s Oil Minister Mohammed bin Hamad Al-Rumhy and Kuwaiti counterpart Bakhit al-Rashidi told reporters that producers had agreed they needed to focus on reaching 100 percent compliance with production cuts agreed at an OPEC meeting in June.
That effectively means compensating for falling Iranian production. Al-Rumhy said the exact mechanism for doing so had not been discussed.
Meanwhile, the cartel has predicted that competition with the U.S. will drop significantly in less than five years, allowing members to keep dominating the market.
During the meeting in Algiers on Sunday, OPEC predicted that U.S. shale growth would “slow significantly” after 2023, triggering renewed demand for their own oil. OPEC, according to The Wall Street Journal, expects U.S. output to top off at 14.3 million barrels a day around 2027 and then drop to an average of 12.1 million barrels a day by 2040.