In its latest oil market report published on Friday, the International Energy Agency (IEA) said that “OPEC+ supply cuts risk aggravating expected oil supply deficit in H2 2023,” which could lead to high prices that will hurt consumers and threaten economic growth.
- In its Oil Market Report, the IEA said that the latest OPEC+ cuts could exacerbate the oil supply deficit and push oil prices higher.
- The rise in oil prices will add pressure on consumers, especially in emerging and developing economies, hurting the global economic recovery.
- The IEA also noted that growth in the U.S. shale patch is limited by supply chain bottlenecks and higher costs.
- OECD industry stocks in Jan surged by 53 mln barrels to 2.830 bln barrels, highest since July 2021.
- Russian oil exports in March rose to highest since April 2020, with oil shipments rising by 600,000 bpd.
- Russian oil product flows returned to levels last seen before Russia invaded Ukraine.
- Rising global oil stocks may have contributed to OPEC+ decision.
Gains of 1 mln bpd from non-OPEC+ starting in March will fail to offset a 1.4 mln bpd decline from OPEC+. Extra cuts by OPEC+ will push world oil supply down 400,000 bpd by end-2023. Global oil demand is set to rise by 2 mln bpd in 2023 to a record 101.9 mln bpd.