Saudi Arabia's decision to prolong the reduction in its crude oil production until the end of this year is expected to lead to a significant shortage in oil supply for the remaining part of the year.As a result, gasoline prices at the pump are likely to remain higher, according to the International Energy Agency (IEA).The …
Saudi Arabia’s decision to prolong the reduction in its crude oil production until the end of this year is expected to lead to a significant shortage in oil supply for the remaining part of the year.
As a result, gasoline prices at the pump are likely to remain higher, according to the International Energy Agency (IEA).
The IEA’s latest monthly report highlighted that OPEC’s production reduction, led by Saudi Arabia as the largest producer and de facto leader of the group, has resulted in a daily decrease of 2.5 million barrels since January.
Although this decline has been somewhat offset by record oil supplies from the United States and Brazil, with non-OPEC production increasing by 1.9 million barrels per day.
However, due to the ongoing reduction in Saudi production and Russian oil exports until the year’s end, the market is now expected to experience a substantial deficit of approximately 1.1 million barrels per day in the fourth quarter.
Nevertheless, the market could see significant volatility due to the potential shortage of oil inventories, as warned by the Paris-based agency.
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