Global oil markets will face supply shortages throughout 2024 rather than previously predicted surpluses as OPEC+ is set to extend production cuts into the second half of the year. writes about this Bloomberg Referring to the report of the International Energy Agency (IEA).
Saudi Arabia and its partners agreed earlier this month to extend production cuts of around 2 million barrels per day until mid-year. But the IEA expects these measures to remain in place until the end of 2024, reflecting the bloc’s “efforts to stabilize oil markets,” the publication writes.
“The change in assumptions results in a small deficit instead of the significant surplus stated in last month’s report,” the unnamed Paris agency said for the publication.
Expectations for global oil consumption growth in 2024 were increased by 110 thousand barrels per day to 1.3 million barrels per day, due to stronger forecasts for the United States and increased demand for marine fuel due to the extension of routes to prevent Houthi attacks in the Red Sea. .
The report stated that due to the route change, the amount of oil in transportation increased to approximately 1.9 billion barrels at the end of April. This figure has reached the second highest level since the Covid-19 outbreak.
Before this OPEC was facing problems to apply There are agreements on Iraq.
Previously, Russia’s coal supply to Asia this year was significant fallen.