OPEC+ production cuts will tighten oil supply this year – EIA
The US Energy Information Administration (EIA) has trimmed its global liquid fuel production forecast by 300,000 b/d from its March forecast in its latest short-term outlook.
PHOTO: Flags of OPEC+ countries. Getty Images
Global liquid fuel production is now projected to rise from 100 million b/d in 2022, to 101.3 million b/d this year.
The EIA has forecast crude oil production from members of the core OPEC group to average at 33.7 million b/d this year. This is down by 400,000 b/d from its previous forecast.
Global oil demand forecast remains unchanged from its previous outlook. It has projected global liquid fuel consumption to increase from 99.4 million b/d in 2022 to 100.9 million b/d in 2023, and by an additional 1.8 million b/d to 102.7 million b/d in 2024.
The EIA has warned, though, that "increasing risks in the US and global banking sectors" are causing "uncertainty about macroeconomic conditions," leading to a possible decline in global oil demand this year.
The US energy info provider forecasts the Brent spot price to average $85/bbl this year - an upward revision of $3/bbl from its March outlook. Similarly, it has raised its 2024 Brent price forecast by nearly $4/bbl to $81/bbl.
By Konica Bhatt
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