The International Energy Agency expected that the OPEC Plus production cut would cause a significant shortage in market supplies until the fourth quarter, but it maintained its estimates of oil demand growth for this year and next, according to what Reuters reported from a monthly report published by the IEA on Wednesday.
The OPEC+ group of countries began reducing their production in November 2022 to stabilize the market, and some countries in the group, led by Saudi Arabia, made additional voluntary cuts, the last of which was announced on September 5.
The IEA report added, according to Reuters, “But as of September, the loss in OPEC Plus production… will lead to a significant shortage in supplies until the fourth quarter.”
The agency added, according to Reuters, that the absence of production cuts at the beginning of next year may tip the balance from a shortage to a surplus.
The International Energy Agency expected that demand for oil in 2023 would grow by 2.2 million barrels per day, somewhat in line with OPEC’s expectations on Tuesday of demand growth of 2.44 million barrels per day.
As for the year 2024, the agency expected, according to what Reuters reported, that the growth in demand for oil would slow significantly to reach 1 million barrels per day, while OPEC expected on Tuesday that demand for oil would grow by 2.25 million barrels per day next year.
(Prepared by: editorial team, contact zawya.arabic@lseg.com)
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2023-09-13 12:36:53
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