Global Oil Supply Surges, Reserves Hit Four-year High Amid Demand Fluctuations
Global oil supply increased by 760,000 barrels per day in september, reaching a total of 108 million barrels per day, according to recent data.This rise coincides with a period of fluctuating demand and growing reserves, signaling a complex dynamic in the global oil market. experts anticipate continued growth in both supply and demand, but predict waning interest in oil as alternative energy sources gain traction.
The International Energy Agency (IEA) forecasts global oil supply will grow by three million barrels per day this year, reaching 106.1 million barrels per day,and by an additional 2.4 million barrels per day in the coming year. Demand in the third quarter of this year increased by 750,000 barrels a day, allowing the petrochemical sector to recover from a slower second quarter, which saw growth of 420,000 barrels per day impacted by new regulations.
Outside of the OPEC+ group, countries including the United States, Brazil, Canada, Guyana, and Argentina are expected to contribute 1.6 million barrels per day more to the global supply this year, and 1.2 million barrels per day more next year. OPEC+ is projected to increase supply by 1.4 million barrels this year and 1.2 million barrels next year, based on current production agreements.
Global oil reserves reached a four-year high of 7909 million barrels in August, increasing by 17.7 million barrels. Reserves within countries belonging to the Institution for Economic Cooperation and Growth (OECD) rose by 22 million barrels,while those outside the OECD increased by four million barrels. China’s increasing oil reserves and a drop in oil reserves held on tankers by eight million barrels contributed to this overall increase. Preliminary data indicates substantially higher stocks, totaling 102 million barrels.
