“OPEC+ will continue to reduce supply in 2024; global oil output to decline in Q1”

<p>As to the International Energy Agency’s (IEA) oil marketing report, there is a forecast decline of 870 kb/d (thousand barrel per day) in global oil output from the fourth quarter of 2023 to the first quarter of 2024 due to severe weather-related shutdowns and additional restrictions from OPEC+.</p>
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<p>The research also said that it is expected that there would be a deficit on the worldwide market all year long. Furthermore, until 2024, the voluntary cutbacks of OPEC+ will continue to take effect, shifting the market’s balance from a surplus to a minor deficit.</p>
<p>The study states that “global oil demand is forecast to rise by a higher-than-expected 1.7 mb/d in Q124 due to increased bunkering and an improved outlook for the United States.”</p>
<p>“Non-OPEC+ is expected to lead increases starting in the second quarter, as a few OPEC+ members said they would prolong further voluntary cuts in order to maintain market stability. According to the paper, “global supply is forecast to increase 800 kb/d to 102.9 mb/d in 2024, including a downward adjustment to OPEC+ output.”</p>
<p>Disruptions to trade flows have also increased the usage of bunker fuel, according to the IEA research. Singapore bunkering reached all-time highs as a result of longer maritime routes and greater vessel speeds.</p>
<p>This, along with the United States’ soaring ethane demand for its petrochemical industry, supports a little modification upwards of 110 kb/d in the projections for world oil consumption this year from the research released last month.</p>
<p>The IEA said in its monthly report that “global oil demand growth is now forecast at 1.3 mb/d in 2024, down sharply from last year’s 2.3 mb/d expansion.”</p>
<p>It is anticipated that Iran, which was the second-largest source of supply growth in the globe last year, would boost output by an additional 280 kb/d this year. On June 1, ministers will evaluate market circumstances at their meeting in Vienna, where they will revise output strategy for the remaining members of the OPEC+ cartel.</p>