COM - Oil Market Tightness Expected To Continue On Russian Support
2024-07-21 21:30:50 ET
Summary
- Notable drop in Russia’s crude oil production and exports since April.
- Russia leads higher compliance by OPEC+ in 2024.
- Crude prompt spreads have soared to the highest levels since 2023.
- Consensus among energy agencies that the supply deficit has widened in Q2 2024.
- Loosening in OPEC+ supply from October is likely to be lower than the proposed quotas.
Notable drop in Russia’s crude oil production and exports since April
Russia’s production and exports have dropped since April on improving compliance with OPEC+ output quotas. There is also evidence on improvement in the country’s refinery run rates on an end to planned and emergency repairs. This is to translate into higher crude processing volumes. It is relevant to note that from end-May, Russia has aligned with OPEC+ partners in terms of restricting crude oil production vis-à-vis simply stipulating export targets....
Oil Market Tightness Expected To Continue On Russian Support