BAKU, Azerbaijan, October 29. The forecast on OPEC call has been downgraded by 270,000 b/d in 2022 from 28.9 million b/d and by 780,000 b/d in 2023 from 30.5 million b/d, Trend reports via the latest oil market review from the Oxford Institute for Energy Studies (OIES).
As the report said, OPEC’s output in 2022 is now expected at 29.1 million b/d in 2022 and at 29.4 million b/d in 2023.
Due to weakening market balances and in line with past pre-emptive behavior, OPEC+ announced a 2 million b/d production cut. At the same time, as the OIES noted, most member countries are already producing well below their quotas.
According to the OIES, the actual cut is expected to vary between 880,000 b/d and 1.2 million b/d, excluding Russia. Meanwhile, “the laggard producers’ gap to target in November, relative to August production levels, is estimated at 1.7 million b/d”.
At the same time, the global oil supply forecast for 2022 has been downgraded by 210,000 b/d from 4.8 million b/d to 4.6 million b/d, and by 690,000 b/d from 1.7 million b/d to 1 million b/d for 2023. The total oil supply is now projected at 99.9 million b/d in 2022 and 100.9 million b/d in 2023.
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