Global Oil Market to tighten this summer

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Global Oil Market to tighten this summer

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IEA: Increasingly Tight Market Demonstrates Need for Domestic Production
Max Sternberg // Researcher, Washington DC
Jan. 24, 2023

The International Energy Agency’s monthly Oil Market Report for January forecasts a dynamic and mutating crude market in 2023: while inventories are expected to grow in the first quarter, various international dynamics may cause the market to be extremely tight by the end of the year. Per IEA, in the first three months of 2023, oil supply is predicted to exceed consumption by approximately one million barrels a day. This is, in part, because Russia continues to defy predictions and managed to produce eleven million barrels a day in December. Additionally, the IEA expects China’s economy to have a slow-moving restart in the early part of the year. However, the next part of the year might tell a different story, especially given we’re already seeing oil price increases as a result of increased Chinese demand. The global oil shortage expected in late 2023 is all the more reason for the United States to continue expanding domestic production, and for federal policymakers to create a regulatory and policy environment that encourages a strong energy sector.

Read More: https://www.energyindepth.org/iea-incre ... roduction/
Dan Steffens
Energy Prospectus Group
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