Global Oil Market To Approach Balance In Q4 2021 - International Energy Agency

The OPEC+ deal on oil output cuts might contribute to balancing the global oil market by the end of the year, the International Energy Agency said in a fresh report released on Tuesday

MOSCOW (UrduPoint News / Sputnik - 14th September, 2021) The OPEC+ deal on oil output cuts might contribute to balancing the global oil market by the end of the year, the International Energy Agency said in a fresh report released on Tuesday.

"The market should shift closer to balance during the last three months of the year when OPEC+ is projected to produce about 300 kb/d (300,000 barrels per day) below the call on its crude," the report read.

With OPEC+ member states further cutting the production by 400,000 barrels per day every month starting August, as agreed on under the deal, the bloc could pump 1.4 million barrels per day above the demand for crude in early 2022, provided Iran remains under sanctions.

"By 2Q22, OPEC+ crude oil output could rise to 2.

4 mb/d above the call. These possible stock builds in 2022 could offset the extended period of inventory draws expected to last until the end of 2021," the report added.

Against the backdrop of the precipitous drop in oil demand as coronavirus-related shutdowns were taking place worldwide, the OPEC+ member states reached an oil production cut deal in April 2020.

At a July meeting this year, OPEC+ countries extended the oil deal until the end of 2022, increasing oil production by 400,000 barrels per day every month starting August until the current restrictions are surpassed. This will allow the members to gradually withdraw from the current obligations to reduce production, currently standing at 5.8 million barrels per day, by the end of next September.