BAKU, Azerbaijan, November 8. Global liquid fuels production will see a 1.0 million barrels per day (mb/d) increase in 2024, a decline from the 1.6 mb/d growth experienced this year, Trend reports.
According to the US Energy Information Administration Agency (EIA), while an expansion in global oil production for the next year is anticipated, sustained production cuts from OPEC+ will limit the overall growth in production compared to the increase in global consumption.
This is expected to lead to a reduction in inventories and upward pressure on oil prices in the early months of 2024, the agency added.
The growth in global crude oil supply has been constrained in 2023 due to deliberate production cuts made by Saudi Arabia and ongoing reductions in production from other OPEC+ countries, the EIA noted. As a result, OPEC's spare crude oil production capacity has increased from 2.4 mb/d in 2022 to a projected 4.3 mb/d in 2024, with Saudi Arabia and the UAE holding the majority of this capacity.
Thus, according to the EIA, world oil production is expected to stand at 101.54 mb/d in 2023 - up by 1.55 mb/d year-on-year (99.99 mb/d in 2022), and then rise further to 102.55 mb/d in 2024.
"Ongoing OPEC+ production cuts will offset production growth from non-OPEC countries and help maintain a relatively balanced global oil market next year. Although the conflict between Israel and Hamas has not affected physical oil supply at this point, uncertainties surrounding the conflict and other global oil supply conditions could put upward pressure on crude oil prices in the coming months," the agency added.
