Oil surplus looms if OPEC+ hikes supply, IEA data show
Global oil markets are poised to swing from a deficit to a surplus next quarter should OPEC+ proceed with plans to boost supplies, data from the International Energy Agency showed.
Oil inventories are currently depleting as a result of peak summer driving demand, but should stabilize in the final quarter of the year, the Paris-based agency said in a report.
That would likely tip into an overhang if the OPEC+ cartel presses ahead with provisional plans to bring back idled output starting in October, the report indicated. Oil consumption in China, the biggest importer, fell for a third month in June, the IEA said.
“Despite the marked slowdown in Chinese oil demand growth, OPEC+ has yet to call time on its plan to gradually unwind voluntary production cuts starting in the fourth quarter,” according to the agency, which advises major economies.
Led by Saudi Arabia and Russia, OPEC+ has outlined a roadmap to revive about 543,000 barrels a day during the final quarter of the year, but stresses the plans could be “paused or reversed” depending on market conditions. A decision may arrive in coming weeks.
Oil prices ease as markets refocus on demand worries
Crude prices have gyrated recently as the summer driving surge and concerns over escalating geopolitical tensions in the Middle East vie with signs of faltering economic growth in China. Brent futures are trading near $80 a barrel.
“For now, supply is struggling to keep pace with peak summer demand, tipping the market into a deficit,” the IEA
