International Energy Agency: Global markets will need sufficient oil supplies

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The International Energy Agency reported today, Friday,  that OPEC + oil producers will need to increase their production in order to meet demand, which is heading to recover, to pre-pandemic levels, by the end of 2022.

The Paris-based agency said that the "(OPEC +) group needs to open the taps so that global markets get adequate supplies," adding that demand for oil is rising.

And they added, in her monthly report on oil: "In 2022, there is room for the 24 members of the (OPEC +) group, led by Russia and Saudi Arabia, to increase crude supplies by 1.4 million barrels per day above their target, for the period between July 2021 and March 2022."

The “OPEC +” group agreed in April 2021 to reduce oil production cuts from May to July 2021, and confirmed the decision at a meeting it held on the first of this June.

The agency stated that meeting the demand that has recovered is "not likely to be a problem", expecting that "OPEC +" will still have an actual spare capacity of 6.9 million barrels per day after July 2021, and that Iran's talks with world powers may free its oil supplies from US sanctions.

 The International Agency said: "If sanctions on Iran are lifted, an additional 1.4 million barrels per day may enter the market in a relatively short time."

 

Source: Reuters