Oil market oversupplied with record-high US output, Brent seen at $87-$92 for 2024: ShareKhan's Mohammed Imran
2.2 million barrels per day (bpd) till mid-2024. Saudi Arabia will extend its voluntary cut of one million bpd in June, leaving its output at around nine million bpd, much below its capacity of 12 million bpd.
Russia, which leads OPEC allies collectively known as OPEC+, had also said that it will reduce exports and output by an extra 471,000 bpd in the second quarter. However, analysts are not particularly bullish on the crude oil prices this year as many believe markets to be oversupplied with OPEC decisions hardly making a difference towards ‘price stability’.
Also Read: Explained | Why did OPEC+ members extend oil output cuts to mid-2024 Moreover, OPEC and Paris-based energy watchdog International Energy Agency (IEA) have emerged divided in their respective oil demand projections for 2024. The IEA raised its demand forecast for the fourth time since November 2023 predicting a tighter market, whereas OPEC has retained its view in its February report.
This week however, oil prices have been on an uptrend and hit a five-month high-mark, the highest level since November 2023, after Ukraine attack on Russian refinery posed supply disruptions. So far in 2024, oil has found support from the ongoing geopolitical tensions and the Houthi attacks on Red Sea.
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