Pavel L Photo and Video/Shutterstock Save for later Print Download Share LinkedIn Twitter High oil demand in August outpaced supply by 2.4 million barrels per day, preliminary data shows. The third quarter is now set to draw inventories by 1.2 million b/d, and the fourth quarter by 800,000 b/d. These balances show that Saudi Arabia’s voluntary output cuts of 1 million b/d are needed to keep the market tight. For the year, inventories are set to drain by just 200,000 b/d, but they were already below average levels for starters. Looking ahead, the first half of 2024 shows inventory builds of 650,000 b/d, even with Energy Intelligence balances extending the kingdom’s voluntary cuts in full through the first quarter of 2024 and by 500,000 b/d for the rest of the year. Market management seems by no means over.
