Benchmarking: Opec-Plus Decision Upends Balances

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  • The decision by Opec-plus this month to reduce crude oil output by 1.2 million b/d from May, excluding Russia’s commitment, will tip global markets deep into deficit, according to consensus.
  • Since the start of the year, analysts have made significant upward adjustments to forecasts for Russian production after exports stayed up, adding to pressure for other Opec-plus members to cut output.
  • Demand growth this year is pegged at an unchanged 1.8 million b/d, if averaging the five reports examined for this survey.

A decision by Opec-plus to cut output has caused most forecasters to show a burgeoning supply deficit as the year drags on. The International Energy Agency (IEA) even shows demand outstripping supply by 2.7 million barrels per day in the fourth quarter.

Oil Demand, Oil Supply, Oil Inventories, Crude Oil, Opec-Plus Supply , Oil Forecasts
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