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OPEC+ Cuts to Tighten Oil Market This Year Before Surplus Returns in 2023: IEA

  • OPEC+ supply cuts through 2023 will lead to a substantial oil market deficit in Q4 2022, per IEA.

  • Higher output from non-OPEC+ countries like the U.S. initially offset OPEC+ cuts, but that changes in Q4.

  • Lack of OPEC+ cuts in early 2023 will shift market balance back to a surplus.

  • China's oil demand has so far been resilient despite economic downturn, but remains a "wild card."

  • Forecasts for 2023-2024 global oil demand growth vary widely between IEA, OPEC and EIA.

reuters.com
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