OPEC+ cuts to tighten oil market sharply in fourth quarter, IEA says

[BumRushDaShow]

Source: Reuters

September 13, 2023 6:14 AM EDT Updated 4 hours ago

LONDON, Sept 13 (Reuters) - Oil output cuts which Saudi Arabia and Russia have extended to the end of 2023 will mean a substantial market deficit through the fourth quarter, the International Energy Agency (IEA) said on Wednesday, as it largely stuck by its estimates for demand growth this year and next.

OPEC and its allies, known as OPEC+, began limiting supplies in 2022 to bolster the market. This month, benchmark Brent crude breached $90 a barrel for the first time this year after OPEC+ leaders Saudi Arabia and Russia extended their combined 1.3 million barrel per day (bpd) cuts until the end of 2023.

Output curbs by OPEC+ members of more than 2.5 million bpd since the start of 2023 have so far been offset by higher supplies from producers outside the alliance, including the United States, Brazil and still under-sanctions Iran, the agency said.

"But from September onwards, the loss of OPEC+ production... will drive a significant supply shortfall through the fourth quarter," it said in its monthly oil report. However, the lack of cuts at the start of next year would shift the balance to a surplus, the agency said, highlighting that stocks will be at uncomfortably low levels, increasing the risk of another surge in volatility in a fragile economic environment.

Read more: https://www.reuters.com/business/energy/opec-cuts-tighten-oil-market-sharply-fourth-quarter-says-iea-2023-09-13/

[jimfields33]

1. Are we even getting much from them? I know at one time we pretty much got it

elsewhere.

[BumRushDaShow]

2. In this case

it's not what we get from them but what the "global supply" becomes, and that impacts the "global prices".

The article had mentioned how our increases + Venezuela coming back online and Iran being able to (with a sanctions reduction) to produce, has offset the initial cuts. But holding those cuts for the rest of the year is expected to continue to reduce any supply (and this is assuming there is no hurricane or other disruptions to our supplies).

Of course the danger is that they price their biggest buyers - China and India - out of the market (unless they continue to sell to them at a discount - at least as Russia has been doing).

[groundloop]

3. But of course the GQP will blame President Biden

For instance, the moronic GQP governor of Georgia has declared an "inflation emergency" to stir up their fanatical base.

[BumRushDaShow]

4. I saw that story

He is considered a RINO and has to do his due diligence to burnish his GOP-loon credentials.