The IEA’s recent first examination of the global supply/demand balances for 2022 has provided a major boost for Opec+ producers. With the IEA forecasting that “global oil demand is set to return to pre-pandemic levels by the end of 2022,” it says that “Opec+ needs to open the taps to keep the world oil markets adequately supplied.”
The Opec+ alliance is currently keeping 6.2mn b/d off the market under the terms of its production cut agreement, of which the 10 participating Opec members are contributing 4mn b/d. Of the three exempt Opec members, Iran is producing around 1.45mn b/d below its capacity due to US sanctions. (CONTINUED - 829 WORDS)
