The International Energy Agency said on Wednesday that the oil cuts implemented by the OPEC+ allies, Saudi Arabia and Russia, will create a “significant” shortage in global supplies until the end of the year.
The agency added in its monthly report on the market that “oil stocks will be at uncomfortably low levels, which increases the risk of another wave of volatility that will not be in the interest of producers or consumers, in light of the fragile economic reality.”
Reuters quoted the agency as saying, “Extending supply cuts by OPEC+ until the end of 2023 will cause a large deficit in the market during the fourth quarter, while maintaining its estimates of demand growth this year and next.”
OPEC and its allies, or the group known as OPEC+, began reducing supplies in 2022 to support the market. This month, the price of Brent crude exceeded $90 per barrel for the first time this year after Saudi Arabia and Russia extended their cuts, which together amount to 1.3 million barrels per day, until the end of the year.
2023-09-13 08:45:30
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