Daily Management Review

Oil stock in OECD countries drops to record low


For the first time since 2004, the Organization for Economic Cooperation and Development (OECD) members' combined oil reserves fell below 4 billion barrels, reports the International Energy Agency (IEA).

Nigel Chadwick
Nigel Chadwick
The analysis found that in September, inventories in OECD nations decreased by 45.5 million barrels, of which 8 million were industrial stocks and 37.4 million were state stocks. The U.S., which released around 28.3 million barrels of oil from reserves, was the main cause of the fall in reserves. The combined reserves of OECD nations were 1.2 billion barrels as of the end of September.

The worldwide demand for oil is expected to continue to fall this year and the following. Demand will rise in OECD nations by 1.3 million bpd in 2022 and by 0.3 million bpd in 2023.

According to OPEC's annual evaluation, there is a risk of underinvestment in the oil sector. The report's authors predict that until 2035, demand will be met by China, India, and other developing nations until energy consumption "plateaus". 

source: iea.org