IEA: OPEC+ cuts will lead to a sharp shortage of supplies during ‎Q4‎

The International Energy Agency confirmed on Wednesday that extending supply cuts by OPEC+ until the end of 2023 will cause a large deficit in the market during the fourth quarter, while maintaining its estimates of demand growth this year and next.

According to Reuters, the agency said in its monthly oil report, “But from September onwards, the decline in OPEC+ production will lead to a significant supply shortage during the fourth quarter.”

OPEC and its allies, or the group known as OPEC+, began reducing supplies in 2022 to support the market. This month, the price of Brent crude exceeded $90 per barrel for the first time this year after Saudi Arabia and Russia extended their cuts, which collectively amount to 1.3 million barrels per day, until the end of the year.