The head of the International Energy Agency’s (IEA) oil markets and industry division told Reuters on Tuesday that the global oil market will perceive a slight surplus in 2024, despite the extension of oil supply cuts from OPEC+ nations.
Oil price has dropped to around $82 a barrel for Brent crude from a 2023 high in September of near $98, poking the OPEC+ to consider if they want to cut more oil supply.
OPEC+ have already pledged total oil output cuts of 5.16 million barrels per day (bpd), or about 5% of daily global demand since late 2022.
The cuts include 3.66 million bpd by OPEC+ and additional voluntary cuts by Saudi Arabia and Russia, two of the biggest countries that lead other countries in terms of possession and production of oil supply.
The price of international benchmark Brent crude rose $0.12 or 0.15% to $82.57 a barrel in the afternoon of Asian trading hours on Wednesday. Meanwhile, the West Texas Intermediate gained $0.09 or 0.12% to trade at $77.86 a barrel.
