IEA expects global oil supply decrease by 400K bpd by end of ‎‎2023.‎

International Energy Agency said today, Friday, that it expects a decrease in the global oil supply by 400 thousand barrels per day by the end of the year, indicating an expected increase in production of one million barrels per day from outside OPEC +, starting in March, compared to 1.4 million barrels per day that the producing countries in the group will reduce output.

The agency said that the rise in global oil stocks may have affected the decision of OPEC +, noting that stocks in the Organization for Economic Cooperation and Development reached their highest level since July 2021, at 2.83 billion barrels, in January.

It explained that the oil production cuts announced by the producing countries in the OPEC + group this month may increase the expected supply deficit in the second half of the year.

“Consumers who are facing inflation in the prices of basic materials will now have to further squeeze their budgets,” the agency said in its monthly report on oil.

“This is strongly reflected in the economic recovery and growth,” the agency added.