IEA sees big oil supply shortfall in Q4 2023 on OPEC+ cuts

Oil barrels

The extension of oil supply cuts by OPEC+ will "will lock in a substantial market deficit" through the end of the year, the International Energy Agency (IEA) said today, Sept. 13, in its monthly oil market report.

"Oil stocks will be at uncomfortably low levels, increasing the risk of another surge in volatility that would be in the interest of neither producers nor consumers, given the fragile economic environment," the Paris-based agency wrote.

Global oil demand remains “on track” to grow by 2.2 million barrels per day (bpd) to 101.8 million bpd this year, driven by a recovery in fuel demand in China, the IEA added.

On the other hand, the agency indicated that Russian oil export revenue surged by $1.8 billion to $17.1 billion in August, as higher prices more than offset lower shipments.