OPEC+ sees tighter market in 2022, risks to oil demand growth
The oil market will have a small surplus of just 0.4 million bpd in 2022, much less than forecast earlier, according to OPEC+, due to underproduction of its members, OPEC+ sources said.
The report comes days ahead of an OPEC+ policy meeting on Sept. 5 and over a week after OPEC leader Saudi Arabia said the group may cut oil output.
The Joint Technical Committee (JTC), which met on Wednesday, advises the Organization of the Petroleum Exporting Countries and allies led by Russia, collectively known as the OPEC+ group of oil-producing nations, on market fundamentals.
Ahead of its Wednesday meeting, the JTC had issued a report, seen by Reuters, suggesting the oil market surplus would amount to 0.9 million barrels per day in a best-case scenario.
After the meeting the figure was put at 0.4 million bpd, two OPEC+ sources said as the group decided to include in balances significant underproduction numbers by its own members.
OPEC+ is ready to cut output amid volatility in the oil futures market, driven by thin liquidity and a disconnect with physical markets, Saudi Energy Minister Prince Abdulaziz bin Salman said last week.
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