COM - Energy official said to foresee oil surplus despite OPEC+ cuts

2023-11-21 15:06:49 ET

The global oil market next year will have a slight surplus despite a possible extension of production cuts by OPEC+ countries, Reuters reported Tuesday, citing an official at the International Energy Agency.

That possible oversupply contrasts with the current oil-market deficit and declining stock levels, said Toril Bosoni, head of the IEA’s oil markets and industry division.

The Organization of the Petroleum Exporting Countries and producers such as Russia will weigh possible supply cuts when they meet on November 26, three OPEC+ sources told Reuters after prices fell by about 16% since late September.

OPEC+ pledged to cut oil output by 5.16 million barrels a day, or about 5% of daily global demand, in a series of steps that started late last year.

The cuts include 3.66 million barrels a day by OPEC+ in addition to voluntary cuts by Saudi Arabia and Russia, according to Reuters.

OPEC+ in June agreed to limit supply into next year. Saudi Arabia in July offered a voluntary cut of 1 million barrels a day that was extended to the end of the year.

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