October 13, 2022 04:10 AM ET
By:AnalysisWatch
In its latest oil market report, the International Energy Agency (IEA) states that OPEC+ cuts will drastically reduce the much-needed buildup of global oil stocks.
Russian oil exports fell by 230,000 bpd to 7.5 million bpd in September, down 560,000 bpd from pre-war levels.
OECD industry stocks were 243 million bpd below the five-year average, at 2.736 billion bpd at the end of August.
The new estimate reduces the outlook for 2023 oil demand growth to 1.7 million bpd, down 470,000 bpd from the previous estimate.
The new OPEC+ cuts derail the oil supply growth trajectory this year and next.
The actual decline in OPEC+ supply will be around 1 million bpd from November.
Higher oil prices may provide a turning point for a global economy already on the brink of recession.
Global oil demand will contract by 340,000 bpd in the fourth quarter of 2012.
The reduced oil demand growth outlook for 2022 brings the total to 1.9 million bpd, down 60,000 bpd from the previous estimate.
The world is struggling to navigate the worst global energy crisis in history.
Global oil demand is slowing due to the economic downturn and rising prices caused by OPEC+ supply cuts.
WTI is retreating from daily highs of $86.86 due to the IEA's gloomy outlook for global oil demand. U.S. crude is trading at $86.57, still adding 0.70% on the day.