The possibility of a significant decrease in global oil supply

Regarding this, the International Energy Agency (IEA) has said that the extension of oil supply cuts by Saudi Arabia and Russia until the end of 2023 will significantly increase the reduction in production in the market during the fourth quarter.

According to the report of the foreign news agency, it should be remembered that OPEC Plus, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, started limiting oil supply in 2022 to strengthen the market.

This month, Saudi Arabia and Russia announced the extension of the current 1.3 million barrels per day cut in oil production until the end of this year 2023, after which the price of Brent oil, the benchmark Brent, exceeded $90 per barrel for the first time.

The organization says that more than 2.5 million barrels of output cuts by OPEC Plus members since the start of 2023 have been offset by increased supply from non-aligned oil producers including the United States, Brazil and Iran. Is.

The World Energy Agency's monthly oil report said that supply in the world market will decrease significantly during the fourth quarter due to OPEC Plus production cut after September.

On the other hand, the agency also said that supply cuts from non-cuts at the start of next year would shift the balance into surplus, with reserves at low levels, adding another boost to volatility in a fragile economic environment. The risk will increase.

It should be noted that last month, Saudi Arabia announced an increase in the policy of voluntary reduction of 1 million barrels per day in oil production until December 2023.

Sources say that this decision to reduce daily production is separate from the decision taken in April 2023 which will be implemented till December 2024.

According to the report, the voluntary decision is aimed at emphasizing the safety efforts being made by OPEC Plus to stabilize the oil market.