OPEC believes that there may be a shortage of crude oil in the world in the fourth quarter of this year. The cartel led by Saudi Arabia, along with partner countries such as Russia, is cutting oil production in order to prop up prices. But the demand for oil is increasing.
The Vienna-based organization writes in its monthly report that the deficit in the fourth quarter could reach about two million barrels (of 159 liters) per day. The cartel unexpectedly announced at the beginning of this month that it would cut production by more than 1 million barrels per day starting in May in order to “support stability in the oil market.”
Russia is also cutting production, in part because of Western sanctions imposed on the country over the war in Ukraine.
But global oil demand will increase by an average of 2.3 million barrels per day this year, according to OPEC. So total oil demand should rise to a record high of 101.9 million barrels per day. The demand for oil is driven, among other things, by the economic recovery after the Corona pandemic, including in the field of aviation. The reopening of the Chinese economy after issuing strict policies regarding Corona will also drive demand, as China is the largest importer of crude oil in the world.
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