The fallout from last week’s Opec+ decision to cut production from November continued apace this week with officials from Saudi Arabia and the US publicly trading barbs. Opec+ officials insisted at the time that the cuts were not politically motivated but were a pre-emptive measure driven by the softening global economy and resultant weakening of demand. Sure enough, Opec and the IEA this week unveiled massive downgrades to their global demand forecasts.
Opec was first out of the gate, dropping its demand estimate for Q4 this year by a massive 780,000 b/d, and for 2023 by a similar 710,000 b/d in its Monthly Oil Market Report (MOMR) released 12 October. The next day the IEA’s Oil Market Report (OMR) cut Q4 demand by 310,000 b/d and 2023 demand by 550,000 b/d (see tables). (CONTINUED - 956 WORDS)
