In a recent statement to Reuters, Toril Bosoni, head of the International Energy Agency’s (IEA) oil markets and industry division, highlighted that the global oil market is anticipated to be well supplied in 2024. With demand growth on a decelerating trend and supply rising from the Americas, Bosoni mentioned that the market is expected to remain relatively balanced this year.
During an industry conference in Oslo, Bosoni expressed that the market outlook suggests a period of stability, despite the recent decision by the OPEC+ group to extend supply cuts. The agreement by OPEC+ members, spearheaded by Saudi Arabia and Russia, to prolong voluntary oil output cuts of 2.2 million barrels per day into the second quarter aims to provide additional support amidst concerns surrounding global growth and escalating output from non-member countries.
While oil demand experienced a growth of approximately 2.3 million barrels per day (bpd) last year, Bosoni indicated a smaller anticipated increase of 1.2 million to 1.3 million bpd in 2024. The IEA projects a record high supply of around 103.8 million bpd, primarily driven by producers outside the OPEC+ alliance such as the United States, Brazil, and Guyana.
Bosoni emphasized that the current supply levels are deemed sufficient to meet the expected growth in demand for oil this year.