OPEC+ Now Sees Smaller Oil Market Deficit In Q4

Cat:

Related stories

Tinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter Rufai

By Abiola Olawale President Bola Ahmed Tinubu has expressed profound...

Natasha vs Akpabio: Court Orders Senate President To Recall Senator Natasha

Warns Natasha Against inappropriate Conduct By Abiola Olawale The Federal...

Hadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APC

By Abiola Olawale Former Minister of Aviation, Hadi Sirika, has...

China Snubs U.S. Crude for Third Month, Even as Ethane Trade Restarts

China has avoided buying U.S. crude oil for three...

…The OPEC+ group now expects the oil market to show a deficit of just 300,000 barrels per day (bpd) in the fourth quarter

…The lower expected deficit would justify the continued cautious approach of the group in adding supply to the market

The OPEC+ group now expects the oil market to show a deficit of just 300,000 barrels per day (bpd) in the fourth quarter, down from initial expectations of a 1.1-million-bpd deficit, delegates told Bloomberg.

The alliance’s Joint Technical Committee (JTC) significantly downgraded the expectations of a market deficit at their meeting on Thursday after reviewing the latest data on global oil demand, Bloomberg’s sources added.

The technical panel monitors the situation on the market and meets ahead of every ministerial meeting of OPEC+. Ministers are scheduled to meet on November 4 to discuss how to proceed with the easing of the collective production cuts.

The lower expected deficit would justify the continued cautious approach of the group in adding supply to the market. Since August, OPEC+ has been easing the cuts by 400,000 bpd in each month through November, despite calls from oil-consuming nations—including the United States—to boost supply and tame the oil price rally.

The downgrade to the expected deficit would also justify the position of OPEC’s top producer and the world’s largest exporter that market participants should look beyond the fourth quarter of this year.

OPEC+ needs to remain cautious with its approach to oil production adjustments despite rising prices, Saudi Energy Minister, Prince Abdulaziz bin Salman, told Bloomberg in an interview earlier this week.

The Saudi minister noted that higher production is only justifiable when there is a clear purpose for it, which, according to him, was now absent as utilities switching from gas or coal to oil were doing on a very limited scale.

The energy minister also said he expected a significant increase in combined OPEC+ oil supply by the end of next year, even without the hypothetical return of Venezuela or Iran to international markets.

“We don’t take things for granted,” he told Bloomberg. “We still have Covid, there are still lockdowns,” and jet fuel supply remains constricted. “So, we’re not yet out of the box and we’re not out of the realm of Covid.”

NB: Tsvetana Paraskova wrote this article for Oilprice.com

Tsvetana Paraskova
Tsvetana Paraskova
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
Exclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsSuper Eagles Icon Peter Rufai Passes Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory BuildBuhari In Stable Condition - Ex-Aide ConfirmsBREAKING: Ex-President Buhari sick, hospitalised abroad2027: Abure, Usman Clash Over Peter Obi’s Rising Profile in ADC CoalitionMTN’s Dabengwa Tier III Cloud Data Centre: A New Era for West African Tech and AIGanduje: Why are they resigning?OPEC Reports a Global Oil Production Decline in 2024IMF Warns FG to Overhaul 2025 Budget to Prevent Economic Meltdown
X whatsapp