Daily Management Review

Bloomberg: Expect the largest deficit of oil on the world market since 2007


Due to Saudi Arabia's drop in output, the global oil market may see a supply shortage of around 3.3 million barrels per day in the fourth quarter, reports Bloomberg referring to the OPEC report from September 12th.

Paul Lowry
Paul Lowry
The fall in Saudi Arabia's oil production and Russia's exports might put pressure on inflation, the agency writes, causing the imbalance to grow to its highest level since 2007. Data of analysts shows that the global oil shortage increased from 0.1 million barrels at the beginning of the year to 1.8 million barrels by the second quarter of 2023.

Due to Saudi Arabia's production reductions, Brent crude prices have risen beyond $90 per barrel. According to trading statistics from London's ICE Futures exchange, the price of a barrel of November Brent crude futures surpassed $92 on September 12 for the first time since 2017.

The OPEC report predicts that the average global oil demand would rise by 2.4 million barrels per day (bpd) in 2023 and by 2.2 million bpd in 2024, reaching 104.3 million bpd.

source: bloomberg.com