Balances: Supply Surplus Rises Ahead of Opec Output Cut

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March supply and demand balances show that inventories are rising by 1.6 million barrels per day, which brings the first quarter supply surplus to 1.4 million b/d. The forecast for April is an inventory increase of 2.8 million b/d, while May, the first month of a voluntary Opec cut, still shows a surplus of 1.7 million b/d. But that would also be the last month that supply is outpacing demand this year as the cut and growing demand flip the world into a 2.3 million b/d deficit for the rest of 2023 starting June — assuming near-full compliance. The Apr. 2 output cut has lifted Brent to a sticky $85 per barrel.

Oil Supply, Oil Demand, Oil Forecasts, Oil Prices, Opec-Plus Supply
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