A production cut from OPEC may have to wait until 2017 as the cartel continues to pump oil to snag market share away from higher-cost producers, an analyst said Tuesday.
Burgeoning energy supply has sent oil prices down by more than half over the last 18 months, but the oil cartel has held onto its 30-million-barrel a day production ceiling.
Crude oil prices have tanked to seven-year lows: U.S. WTI oil is down around $36 a barrel currently while Brent crude is around $38 a barrel. The slump in energy prices has also rocked stock markets and raised doubts over the ability of energy companies to roll over their debt.
"At this point in time, they've (OPEC) got a very short window of opportunity to show the rest of the market that their strategy is working and they are actually regaining some market share but that is just constrained to the end of this year and probably next when non-OPEC production is actually forecast to fall," Argus Media's vice president of crude for Middle East & Asia-Pacific, Alejandro Barbajosa, told CNBC's Squawk Box.