(MENAFN) Toril Busoni, the head of the Oil Markets Division at the International Energy Agency (IEA), conveyed on Tuesday that the global oil market is anticipated to experience a slight surplus in supply by 2024, even if OPEC+ countries extend their production cuts into the following year. Speaking at a conference in Oslo, Busoni highlighted the current scenario, stating that the oil market is presently grappling with a deficit, leading to a rapid decline in inventories.
Despite the potential surplus projection for 2024, Busoni cautioned that the existing low levels of global oil inventories pose a risk of heightened volatility. She emphasized that the market is susceptible to increased unpredictability in the face of unforeseen developments related to either demand or supply factors.
According to Busoni, the global oil market is currently characterized by declining inventories, a trend that has contributed to the ongoing deficit. This situation underscores the delicate balance in the oil market and the potential challenges that may arise if unexpected events disrupt the current supply-demand equilibrium.
In a related context, three sources within the OPEC+ alliance informed Reuters that discussions are underway regarding the possibility of implementing additional cuts in oil supplies during the upcoming meeting later this month. This deliberation follows a 16 percent decrease in oil prices since late September. Despite ongoing support from OPEC+ production cuts and geopolitical tensions in the Middle East, the price of Brent crude has dipped to around USD82 per barrel after reaching its peak earlier in the year at nearly USD98.
The concerns revolving around demand uncertainties and the prospect of a surplus in the coming year have exerted pressure on oil prices. The dynamic interplay between market forces, geopolitical events, and OPEC+ decisions continues to shape the trajectory of global oil prices, adding an element of complexity to the outlook for the energy market.
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