IEA expects significant shortage of oil in 4Q23

The extension by Russia and Saudi Arabia of the decision to reduce oil production and supplies until the end of the year will lead to a significant deficit in the world market in the fourth quarter, the International Energy Agency (IEA) said, Report informs via TASS.

The IEA notes that the Saudi-Russian alliance is a serious challenge for oil markets.

“After oil prices were relatively calm in August, with volatility at multi-year lows. The decision by Saudi Arabia and Russia to extend oil production and supply cuts by a total of 1.3 million bpd until the end of the year triggered a price jump for North Sea Dated (Brent dated) above $90 per barrel to a 10-month high,” the IEA said.

In early September, Russia extended the reduction in oil supplies by 300,000 b/d until the end of the year, and Saudi Arabia decided to extend the voluntary reduction in oil production by 1 million b/d for the same period.