Slowdown in global oil demand affects prices and supply: IEA confirms data for the 4th quarter of 2023, OPEC+ makes production cuts.
AIE Petroleum (International Energy Agency), countries outside the OPEC+ cartel will be able to meet all expected increases in consumption for next year. And he also stated that the conjunction between declining international demand and growth in supply from countries not affiliated with OPEC+, such as the United States, tends to persist. These factors are already impacting oil prices, which have fallen to less than 75 dollars per barrel, contrasting with almost 100 dollars registered in September.
Brazil helps to increase the production of oil. The body stated that producers such as Brazil and Guyana should contribute, next year, to an increase of 1,2 million barrels per day, in relation to the supply of oil by non-OPEC countries. Not surprisingly, that year the organization invited Brazil to join the group; In Guyana, neighboring Venezuela seems to have noticed the surplus production. The US also recorded record production oil in the year. The country is expected to close 2023 with record production of 12,9 million barrels of oil stupid.
Drastic slowdown in oil production
The International Energy Agency (IEA) announced that oil production had a drastic slowdown due to production cuts imposed by OPEC+ and other producing countries. Since the start of the pandemic, demand for oil has fallen significantly, leading the OPEC++ cartel to reduce its offer in an attempt to stabilize the oil prices.
OPEC+ cuts production to maintain oil prices
OPEC+, which includes OPEC and other producing countries such as Russia, has implemented record production cuts to keep oil prices at acceptable levels. With demand falling and oil stocks reaching historic highs, the OPEC+ cartel sought to control supply to prevent an even greater drop in oil prices.
Brazil and Guyana increase their oil production
While most OPEC+ member countries have reduced their oil production, Brazil and Guyana have increased their production. Both countries are expanding their oil production capacity and looking to increase their market share amid reduced production by members of the OPEC+ cartel.
Venezuela faces challenges in oil production
Venezuela, once one of the largest oil producers in the world, faces significant challenges in oil production due to political and economic issues. The country has seen its oil production fall to historically low levels, and is struggling to maintain its share of the global oil market.
Overall, the oil production situation remains dynamic, with different countries and groups seeking to find a balance between supply and demand in an ever-changing oil market. While the IEA predicts a slow recovery in oil demand, global uncertainty continues to impact the oil and fossil fuel industry.
Source: moneytimes
