BAKU, Azerbaijan, Jan.13
By Leman Zeynalova – Trend:
Global oil inventories are set to increase by 0.5 million b/d in 2022 and by 0.6 million b/d in 2023, Trend reports with reference to the US Energy Information Administration (EIA).
“We estimate that global oil inventories decreased by an average of 1.4 million b/d in 2021, after increasing by 2.1 million b/d in 2020. In our forecast, global oil inventories increase by 0.5 million b/d in 2022 and by 0.6 million b/d in 2023. This inventory growth in largely reflects growth in global oil production paired with slowing growth in oil consumption,” reads the EIA report.
Global oil supply increases in the forecast, in part, because of easing production cuts from OPEC+ producers and the effects of higher 2021 oil prices on U.S. tight oil production.
“Total oil inventories in the OECD fell from 3.0 billion barrels at the end of 2020 to 2.7 billion barrels at the end of 2021. We expect oil inventories in the OECD to rise to 2.8 billion barrels at the end of 2022 and to 2.9 billion barrels at the end of 2021,” says the report.
The EIA analysts note that for more than a year now, oil consumption has outpaced oil production.
“Production has remained restrained as a result of crude oil production curtailments by OPEC+ members, investment restraint from U.S. oil producers, and other supply disruptions. Oil consumption outpacing oil production has led to persistent withdrawals from global oil inventories and significant increases in oil prices,” reads the report.
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