BAKU, Azerbaijan, May 16. World oil supply in 2023 is forecast to increase by 1.2 mb/d, Trend reports citing the latest oil market outlook from the International Energy Agency (IEA).
"From April through December, OPEC+ oil production is set to drop by 850,000 b/d, while supply from those outside the alliance (non-OPEC+) is forecast to rise by 710,000 b/d. That would leave global output at 101 mb/d by end-2023 (down 140,000 b/d from April)," the report said.
According to the report, the forecast has been revised down by 400,000 b/d from the previous outlook.
"World oil supply fell 230,000 b/d to 101.1 mb/d in April after sharp losses in Iraq, Nigeria and Brazil were tempered by seasonally higher biofuels and modest increases elsewhere. May will see a far steeper overall decline – possibly topping 1 mb/d - as wildfires shut in large volumes of Canadian barrels and extra supply cuts from core OPEC+ countries kick in. The voluntary curbs led by Saudi Arabia and its Middle Eastern neighbours, and including Russia, are on top of a reduction that took effect last November as the bloc sought to support the market amid a deteriorating economic outlook," the report said.
As the IEA noted, non-OPEC+ is expected to dominate the global oil supply growth in the current year, with volumes rising 1.7 mb/d compared with 1.5 mb/d in 2022.
"The US and Brazil fuel the expansion. As for OPEC+, additional curbs along with sanctions on Russia will deepen the group’s year-on-year decline to 560,000 b/d in contrast to a massive 3.1 mb/d expansion in 2022 as it phased out record 2020 supply cuts," the agency added.
