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Annual report shows OPEC market share falls despite maintaining production

Oil prices tumbled dramatically last year as global oversupply quickly outpaced sluggish demand. A decision from OPEC last November to maintain production levels despite the growing oil glut and defend market share rather than price saw the value of crude oil collapse further.

OPEC’s annual report, released earlier this week, indicated that not only have lower oil prices brought the value of OPEC’s exports under $1 trillion for the first time since 2010, but the group also lost market share as the global oil and gas industry adjusted to the lower price environment.

The group decided to reaffirm its production quota at 30 MMBOPD at its June meeting, but the group has produced above this mark for the past 12 months. Despite the increased production coming from the group, its share of the market fell to 32.6% from 33.5% a year before.

Exports from OPEC fell in value to $993.3 billion last year, down 11% year-over-year from $1.112 trillion in 2013, reports The Wall Street Journal. Their combined current account balance fell 35% in the same period of time to $273.6 billion.

With the OPEC oil price basket sitting in the $60 range, only Kuwait and Qatar are meeting their breakeven costs, according to data from Bloomberg. Even at prices at $100, half of OPEC’s members would still not be able to meet their breakeven costs, including Saudi Arabia, the group’s largest producer, which has a breakeven cost at $103 per barrel.


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