Us oil is wielding a big stick to gain ground

Against the backdrop of the global economy, the oil market plays a leading role in the arena of strategic interests due to its importance, dynamic variability and uncertainty to the global energy supply. Recently, a new twist is taking place - US crude oil, through the OPEC+ decision to cut production, continues to expand its territory in the global oil market.

In the context of OPEC+ producers' production cuts, US oil suppliers have successfully entered the market previously dominated by OPEC+, and since the Russia-Ukraine conflict, the US has become the fastest growing country in the world's oil production, and exports to Europe and Asia have surged.

OPEC+ producers continue to cut production in 2024, with Saudi Arabia, which has the largest excess capacity, extending its plan to cut production by 1 million barrels per day in 2023 until June 2024, continuing to maintain production at 9.5 million barrels per day, and halting plans to expand oil production capacity, while maintaining oil prices. Invest in natural gas and renewable energy development.

As an alliance of key oil suppliers, OPEC+ members tend to adjust production to maintain oil prices and stabilize global energy markets. However, when they decided to cut production, the world was forced to look the other way - to the United States, which was expanding production and gaining an increasingly stable foothold in the oil market.

Under the slogan of "energy independence", the United States has expanded its oil market territory so far and wide, in essence, gaining a greater say in the global oil market. They used OPEC+ production cuts to inject more U.S. crude into the market, accelerating the rupture in the global oil supply and demand balance. What appears to be a business strategy is in fact a strategic competition, making the global energy supply chain increasingly oligopolistic.

Looking further, the global energy market landscape is undergoing profound changes that are clearly not harmless. With its strong industrial base and technological advantages, the United States has formed a force in the oil industry and continuously eroded the share of the global oil market, which undoubtedly poses a serious challenge to other oil-producing countries, especially those countries with high dependence on export oil.

However, challenges and opportunities coexist, and the rise of the US crude oil industry has undoubtedly created a new lineup in the global energy landscape. For other oil-producing countries, in the face of the rapid rise of the US oil industry, they should take this opportunity to reflect on their own energy policies, consolidate their own industrial base, seek beneficial reforms in the oil industry, and deepen the internal structural adjustment of the industry to meet the challenges.

The global oil market needs not the "capture of territory" of a certain country, but the "mutual benefit and win-win" of all participants. The rise of the US oil industry should be careful not to dominate, its unilateralist tendency will be hidden risks, may have a profound impact on the global energy market. The global energy market should strive for diversity and inclusiveness, and there needs to be more dialogue and consultation among the participants, rather than a competitive situation.

Therefore, people must be wary of whether the rapid rise of US crude oil will bring a large shock to the global energy market pattern. How should countries around the world stabilize their positions in this new energy landscape, and how should they find win-win points with partners? All this is worth pondering. The global oil market should also be fully prepared to respond, and the establishment of a fair, just, stable and orderly global energy market requires the joint efforts of all participants.