The Organization of Petroleum Exporting Countries and its allies (OPEC+) says it expects global oil markets to tip into surplus this quarter as it downgrades the outlook for demand, which would also be rivalled by non-OPEC supplies.
This is coming despite warnings by the International Energy Agency (IEA), as OPEC+ will most likely not carry out the 100,000 barrels per day (bpd) production target increase in the coming months due to limited spare capacity.
This was disclosed by OPEC forecasts for the month in its newest monthly report, according to Bloomberg.
What OPEC is saying
OPEC said it will cut forecasts for the amount of crude it will need to pump in the third quarter of 2022 by 1.24 million barrels a day, to 28.27 million a day, according to its latest monthly report. This is 570,000 bpd less for the month of July.
Earlier this month, the cartel had agreed to increase production by 100,000 bpd, citing limited storage spaces due to under-investment in the sector.
OPEC added that consumption would be 99.93 million barrels a day for the quarter, citing that global oil demand this quarter will drop by 720,000 barrels a day, and non-OPEC supply to rise by 520,000 a day.
What you should know
- Nairametrics reported earlier that the Organisation of the Petroleum Exporting Countries (OPEC) said that Nigeria recorded an average of 1.183 million barrels per day (bpd) in its crude oil production for the month of July 2022.
- According to secondary sources, it is an increase of 7,000 barrels per day when compared to the average of 1.176 million barrels per day that was achieved in June 2022.
- Meanwhile, the International Energy Agency (IEA) says that the Organization of Petroleum Exporting Countries and its allies (OPEC+) will most likely not carry out the expected oil output increase in the coming months due to limited spare capacity.
