Mitsubishi UFJ: Oil surplus and idle capacity will put pressure on oil prices by 2025.

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Jinshi data news on December 5th, Mitsubishi UFJ Financial Group stated that although OPEC+ production increases may be delayed and member countries’ Compliance levels may improve, global oil surplus and ample idle capacity may put pressure on oil prices next year. OPEC+ is expected to gradually increase production after April, and by 2025, OPEC+'s average annual supply will increase by 700,000 barrels per day. However, further delays will not solve the dilemma faced by OPEC+, that is, there is hardly any room in the medium term to completely lift the production cuts and regain lost market share. The average price of Brent crude oil is expected to remain at $73 per barrel, reflecting an excess capacity of 900,000 barrels per day and approximately 6 million barrels of idle capacity.

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