OPEC Plus predicts limited oil supply shortages
News_Code: 355510 11/1/2021 9:13:09 AM
OPEC Plus predicts limited oil supply shortages
OPEC Plus now expects the oil market to have a shortfall of only 300,000 barrels per day in the fourth quarter of this year, which is less than the 1.1 million barrels per day previously forecast by the group.
 

OPEC Plus representatives told Bloomberg: The OPEC Joint Technical Committee at its meeting on Thursday, after reviewing the latest statistics on global demand for oil, significantly lowered expectations of supply shortages in the market.

The committee monitors the state of the oil market and meets before each meeting of OPEC Plus ministers. The group's ministers are scheduled to meet on November 4 to discuss easing restrictions on mass supply.

The forecast of less supply shortages justifies the continuation of OPEC Plus' cautious approach to increasing supply to the market. Since August, OPEC Plus has been easing supply constraints of 400,000 barrels per day each month until November, ignoring requests from oil-consuming countries such as the United States for more supply and controlling price growth.

The downward revision of the projected supply shortage also justifies Saudi Arabia, the world's largest oil exporter, which says market participants need to look beyond the fourth quarter of this year.

Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with Bloomberg last week that OPEC Plus should be cautious in its approach to regulating production despite rising prices. He noted that higher production is justified only when there is a clear purpose, which does not exist now because the switching of power plants from gas or coal to oil has been done on a very limited scale.

According to Oil Price, the Saudi Minister of Energy also said that he expects the total supply of OPEC Plus to increase by the end of 2022, even without the return of Iranian or Venezuelan oil to international markets.