Oil markets might be showing signs of softening as Opec+ output gradually rises month-on-month, but any relief could end up being transitory. Key market reports looking ahead at the 2023 supply/demand balance were released this week and pointed towards producers struggling to match strong demand growth.
Forecasting the market outlook for next year is a daunting challenge with demand still being impacted by fresh outbreaks of Covid-19, while the global oil trade is undergoing extreme dislocations amid the Ukraine conflict. As the IEA noted in its July Oil Market Report (OMR) this week, “rarely has the outlook for oil markets been more uncertain. A worsening macroeconomic outlook and fears of recession are weighing on market sentiment, while there are ongoing risks on the supply side.” (CONTINUED - 848 WORDS)
