IEA analysts are worried about further increases in oil prices on world markets. The main reason is the production cuts of the OPEC+ group, which eats up the volume of oil reserves in the world. Analysts estimate that global stocks will decrease by 2.2 million barrels per day in 3Q and by 1.2 mbd in 4Q.
The group’s current production of cards in the face of growing global demand is causing the market price to rise. Brent rose above $88 per barrel, the highest since January of this year.
The OPEC+ group has started to cut its production towards the end of 2022 in an attempt to support price developments in the market. In April, the group decided to extend the production limit until 2024.
ACCORDING to the IEA, global oil supplies in Europe decreased by 910,000 barrels per day of production, and this was due to the decline in Saudi Arabia’s production. Russian production stagnated at 7.3 mbd.
For the year 2024, IEA analysts estimate a slowdown in demand growth on average to 1 mbd. A month ago, analysts estimated a decline of 850,000 bd. OPEC has estimated that demand will increase by 2.25 mbd in 2024.
For this year, the IEA estimates the growth of global demand by 2.2 mbd. OPEC estimates 2.44 mbd.
According to the IEA, total demand should reach 102.2 mbd on average this year. A full 70% of the growth should be generated by demand from abroad.
Vladimr Urbnek
In the field” for the past 20 years. After several years of experience in securities trading, Vladimr Urbnek has been devoted to reporting on domestic and foreign capital markets for the past 15 years.
He considers the age to be the result of experience and ability compared to the time before the last major crisis in 2008-9.
2023-08-11 14:19:37
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