global oil supplies fell by 1.4 million barrels per day in January – Kommersant
[ad_1]
In January 2024, global oil supplies fell sharply by 1.4 million barrels per day (b/d) and averaged 101.45 million b/d, according to the monthly report International Energy Agency (IEA). The decrease in supplies, as explained by the IEA, occurred against the backdrop of new voluntary production cuts by OPEC+ countries, as well as interruptions in oil production in North America due to severe cold weather.
According to IEA estimates, extreme frosts in North America led to a decrease in production in the United States by 540 thousand bpd, in Canada – by 360 thousand bpd. Oil production decreased by another 300 thousand b/d due to the voluntary commitments of a number of OPEC+ member countries. Yemen’s Houthi attacks on ships in the Red Sea also put pressure on the market.
At the same time, the IEA predicts that overall, in 2024, global oil supply will increase by 1.7 million bpd, to a record 103.8 million bpd. At the same time, 95% of supply growth will be provided by countries outside OPEC+. The leaders in increasing supplies will be the United States, Brazil, Guyana and Canada, the IEA noted.
At the end of November 2023, OPEC+ countries agreed extend the reduction in oil supplies. Saudi Arabia has pledged to reduce oil exports by 1 million bpd. Russia increased the reduction to 500 thousand bpd, and the rest of the organization’s countries collectively reduced oil exports by 500 thousand bpd. The agreement is valid until March 2024.
In January 2024, Saudi Arabia announced price cuts for February oil supplies to buyers in all regions, including Asia, amid lower market demand. Contract price level was demoted immediately by $2 per barrel.
About the IEA country forecast for oil consumption – in the publication “Kommersant” “India will add to oil demand”.
[ad_2]
Source link
