BAKU, Azerbaijan, October 13. Global oil supply growth is expected to decelerate to 170,000 barrels per day from the third to the fourth quarter of 2022, Trend reports via the latest oil market update from the International Energy Agency (IEA).
After significant growth of 2.1 million barrels per day from the second to the third quarter of the current year, a massive drop in supply is expected, following the decision of OPEC+ to reduce the official production target by 2 million barrels per day from November - a reduction of 1 million barrels per day compared to actual production, given the insufficient performance of the bloc to quotas.
“It was the world’s top three producers – Saudi Arabia (unwinding OPEC+ cuts), the US (chugging ahead) and Russia (showing resilience despite sanctions) – that propelled supply above demand in the third quarter. The stock building is now expected to slow considerably in the last three months of this year – despite our downgrade to demand growth – as Saudi output is constrained by new lower quotas and Russian production drops due to the EU embargo on its crude oil,” the report said.
However, as the agency noted, any price support from the OPEC+ is unlikely to generate further immediate growth from non-OPEC+, which is, in its turn, on course to provide an additional 290,000 barrels per day of supply by the end of 2022.
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