The International Energy Agency expected OPEC Plus production cuts to cause a significant shortfall in market supplies through the fourth quarter, but it maintained its estimates of oil demand growth for this year and next, according to a monthly report published by Reuters. IEA on Wednesday.
The OPEC Plus group of countries began cutting 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 shortfall in supplies through the fourth quarter.”
According to Reuters, the company added that the absence of production cuts early next year would be a surplus from inventory shortages.
The International Energy Agency expected oil demand to increase by 2.2 million barrels per day in 2023, in line with OPEC’s expectations on Tuesday for a rise of 2.44 million barrels per day.
As for 2024, the company expected, according to a Reuters report, oil demand growth to slow significantly to reach 1 million barrels per day, while OPEC oil demand on Tuesday expected to increase by 2.25 million barrels. per day next year.
(Prepared by: Editorial team, contact zawya.arabic@lseg.com)
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