According to the International Energy Agency’s (IEA) global oil market report for July, the total production level of the OPEC+ group, which consists of the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, with the effect of Saudi Arabia’s production cut decision, is 1.2 million barrels per day. decreased. With the decrease in question, the group’s production fell to 50.7 million barrels per day in July, the lowest level since October 2021.
While global daily oil production decreased by 910 thousand barrels compared to the previous month to 100 million 900 thousand barrels, the production of non-OPEC+ countries increased by 310 thousand barrels per day in the same month and reached 50.2 million barrels per day.
Emphasizing that the markets will shrink further in the third quarter after Saudi Arabia and Russia, the leading producers of the OPEC+ group, announced in August that they would extend their voluntary supply cuts until September, the report stated that the said cuts led by Riyadh brought the group’s joint production to 50.6 million barrels per day in the third quarter of the year. It is predicted that the production levels of non-OPEC+ countries, which are expected to decrease by as much as a record level, will reduce the effect of these cuts to some extent.
It is estimated that global oil production will be 101 million 500 thousand barrels this year, with an increase of 1 million 500 thousand barrels per day compared to last year. Non-OPEC+ countries such as the USA, Brazil, China and Guyana, which are expected to account for around 49 percent of global production, are expected to have the largest share in the annual increase, contributing 1.9 million barrels per day to global supply.
Next year, global oil supply is estimated to be 103 million barrels per day. The contribution of non-OPEC+ countries to global supply is expected to reach 1.3 million barrels per day, reaching 49.9 percent of the global supply. OPEC+ countries, on the other hand, will realize a limited increase by 160,000 barrels per day next year.
The IEA predicts world oil demand will hit record levels this year, fueled by a busier-than-expected summer travel season, increased oil use in power generation, and increased Chinese petrochemical activity.
While it is expected that the global oil demand will increase by 2.2 million barrels per day compared to last year and will reach 102 million 200 thousand barrels, China’s share in the said growth is expected to be over 70 percent.
The IEA cut its global demand growth forecast by 150,000 barrels a day for next year. Global oil demand will increase by 1 million barrels per day in 2024 to 103 million 200 thousand barrels per day.