The global oil market next year will be in slight surplus despite a possible extension of production cuts by OPEC+ countries, Reuters reported on Tuesday, citing an International Energy Agency official.
This possible excess supply contrasts with the current situation of the oil market. deficit and declining stock levels, said Toril Bosoni, head of the IEA’s oil industry and markets division.
The Organization of the Petroleum Exporting Countries and producers such as Russia will weigh possible supply cuts when they meet on November 26, three OPEC+ sources told Reuters after prices fell about 16% since late September.
OPEC+ pledged to cut oil production by 5.16 million barrels per day, or about 5% of daily global demand, in a series of measures that began late last year.
The cuts include 3.66 million barrels per day by OPEC+, plus voluntary cuts by Saudi Arabia and Russia, according to Reuters.
OPEC+ agreed in June to limit supply until next year. Saudi Arabia offered a voluntary cut of 1 million barrels per day in July that was extended until the end of the year.
