The International Energy Agency said the global oil market was walking a “tightrope” between supply shortages and a possible economic slowdown, with demand already being hit by high prices and deteriorating economic conditions.
The foggy expectations were reflected in choppy trading, which saw Brent oil prices fall seven percent below $100 a barrel on Tuesday amid futures traders’ concerns about an economic slowdown, but gains in the spot market. Still showing strong demand so far. .
The Paris-based agency said: “The oil market outlook has rarely been more uncertain. Lower macroeconomic expectations and fears of a recession are weighing on the market’s path, while there are risks on the supply side.”
“So far, weaker-than-expected oil demand growth in developed countries and resilient Russian supply” have moderated the impact of the market deficit, the agency added in its monthly oil report.
However, demand expectations fell by just 200,000 bpd in 2022, and the market is on track to post annual growth of 1.7 million bpd this year and 2.1 million bpd in 2023, to 101.3 million bpd. Receipt. day, by supporting growth in developing countries.
These estimates are much lower than the estimates of the Organization of the Petroleum Exporting Countries (OPEC), which indicated an annual growth of 3.4 million barrels per day on Tuesday. That’s more in line with the US Energy Information Administration’s estimate of a 2.2 million bpd increase.
On the other hand, despite the fact that Russia’s oil exports have reached their lowest level since last August, the agency has announced that with the increase in oil prices, Russia’s export earnings have increased by $700 million monthly.
The profits have supported Russian military operations in Ukraine, a situation the agency says is “unlikely.”
He added: Consultations are underway to define a strong market mechanism to ensure effective implementation and control of Russian oil prices.
Source: Lebanon Debate
