BAKU, Azerbaijan, November 15. Global oil supply from October through December 2022 is expected to drop by 1 million barrel per day (mb/d), Trend reports via the latest oil market update from the International Energy Agency (IEA).
After a growth of 3.2 mb/d of global oil output with Saudi Arabia and the US ramping up production and surpassing pre-COVID-19 pandemic rates, the supply is forecast to decline, as the decision of OPEC+ to cut its production by 2 mb/d, and the EU’s ban to suspend imports of Russian oil come into force, the IEA said.
“The actual OPEC+ reduction is expected to be less than half the headline amount as most of the bloc is already pumping far below quotas,” the report noted.
At the same time, the IEA pointed out that, albeit the expected decline, global output is projected to surpass demand by the end of 2022.
“For 2022 as a whole, global oil supply is forecast to rise by 4.6 mb/d year-on-year to 99.9 mb/d. OPEC+ is on track to contribute 3 mb/d, with Saudi Arabia poised to deliver annual growth of 1.6 mb/d - equal to all the combined gains from non-OPEC+ for the year,” the report said.
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