April 20, 2024
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OIL & GAS

IEA: Global Oil Market Well Supplied with Demand Growth Slowing

Toril Bosoni, head of the International Energy Agency’s (IEA) oil markets and industry division, has said that the global oil market is currently relatively well supplied, with demand growth slowing and supply increasing from the Americas.

“Depending on the pace of oil demand growth going forward, the strength of summer demand, any unexpected outages, we see that the market (is) relatively well supplied this year,” Toril Bosoni said on a sidelines of an industry conference in Oslo.

Despite the recent decision by the OPEC+ group to extend supply cuts, the IEA anticipates relatively calm markets.

OPEC+ members, led by Saudi Arabia and Russia, agreed to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, providing additional support to the market amid concerns over global growth and rising output outside the group.

While oil demand increased by approximately 2.3 million barrels per day (bpd) last year, the growth in 2024 is projected to be smaller, ranging from 1.2 million to 1.3 million bpd, according to Bosoni.

The IEA expects supply to reach a record high of about 103.8 million bpd, primarily driven by producers outside OPEC+, including the United States, Brazil, and Guyana.

Bosoni emphasized that the current supply levels are sufficient to meet the demand growth observed so far.

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