The oil market will face a deficit due to OPEC+ production cuts – Kommersant
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The International Energy Agency (IEA) has reported that the global oil market will face a supply shortage in 2024 instead of the expected surplus. Agency, as stated in reportconnects this with the continued reduction in oil production of OPEC+ countries.
Global oil production, as predicted by the IEA, will decrease by 870 thousand barrels per day (b/d) in the first quarter of 2024 compared to the fourth quarter of 2023. The agency increased its forecast for global demand growth by 110 thousand bpd, to 103.2 million bpd. As stated in the report, the need for fuel has increased for ships as they take longer routes around the Red Sea.
The IEA increased the forecast for oil supplies in the first quarter from countries that are not members of OPEC+ by 100 thousand b/d, to 102 million b/d. At the end of 2024, this figure is forecast to decrease by 900 thousand b/d, to 102.9 million b/d.
The increase in oil consumption, according to the agency, will be offset by increased supplies from the United States, Brazil, Canada and Guyana. The report also said that consumption growth is declining due to the recovery from the pandemic and the development of alternative energy.
Read more about the situation with oil production in the Kommersant publication. “OPEC+ will continue production cuts until the summer”.
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