Tuesday 13 June 2023

#SaudiArabia's Output Cuts Will Tighten Oil Market Sharply, OPEC Data Signals - Bloomberg

Saudi Arabia's Output Cuts Will Tighten Oil Market Sharply, OPEC Data Signals - Bloomberg

Saudi Arabia’s latest oil production cuts are set to tighten global markets sharply next month, data from OPEC show.

Even before the kingdom announced its surprise new measures just over a week ago, the Organization of Petroleum Exporting Countries expected that world inventories would deplete rapidly in the second half amid a post-pandemic recovery in fuel demand.

With the 1 million barrel-a-day cutback to be implemented by Riyadh in July — and possibly longer — the shortfall will intensify. World consumption will exceed supplies by roughly 2.7 million barrels a day next month, a report from OPEC indicated on Tuesday.

If the kingdom opted to extend the reduction for the whole third quarter, it would be the biggest deficit since 2021.

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