Global oil markets to face supply deficit in 2024

14th Mar 2024 10:32

(Sharecast News) - Global oil markets will face a supply deficit in 2024, according to the International Energy Agency, instead of the surplus previously predicted as OPEC+ supply cuts were expected to continue into the second half.

The International Energy Agency's projection was based on the assumption that voluntary cuts by OPEC+ will remain in effect through 2024 unless confirmation from the producers' alliance indicates otherwise.

"On that basis, our balance for the year shifts from a surplus to a slight deficit," said the agency.

Global oil supply was projected to increase by 800,000 barrels per day to 102.9m bpd, while demand was pegged to average a record 103.2m bpd in 2024.

West Texas Intermediate surged 2.07% on the news, hitting $81.37 per barrel, while Brent Crude rallied 1.74% to $85.49.

The International Energy Agency also hiked its annual oil demand growth forecast, pointing to higher-than-expected crude consumption of 1.7m bpd in Q1. It expects oil demand to grow by 1.3m bpd in 2024, up from its previous estimate of roughly 1.2m bpd.

Reporting by Iain Gilbert at Sharecast.com