The Saudi-Russian alliance is a serious challenge to oil markets, say IEA analysts.
The continuation of Russia and Saudi Arabia’s decision to cut oil production and supply until the end of the year will lead to a large deficit in the global market in the fourth quarter. This was stated in the September report of the International Energy Agency (IEA).
Agency analysts note that the Saudi-Russian alliance is a serious challenge to 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 totaled 1.3 million barrels per day (bpd) until the end of the year. triggered an increase in Brent oil prices above $90 per barrel to a 10-month high,” the report said.
The IEA indicates that oil demand growth of 1.5 million b/d in the second half of 2023 is higher than supply growth of 1.24 million b/d. But at the beginning of 2024, if the cuts are canceled, the oil market will return to surplus, but the reserves of raw materials will still be low.
Let’s remember that in early September, Russia extended the reduction in oil supplies by 300 thousand barrels per day until the end of the year, and Saudi Arabia decided to extend the voluntary reduction in oil production by 1 million barrels per day. days for the same period. .
As you know, in the first half of 2023, Russia’s oil and gas revenues fell by almost 50%. Currently, the Russian Federation is trying to stimulate the increase in oil prices.
Source: korrespondent
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