OPEC+ Strategy Ensures Balanced Global Oil Market Amid Predicted Deficit

Russian Deputy Prime Minister Alexander Novak stated that the global oil market will be balanced in the second half of the year due to the OPEC+ deal on production supply. OPEC+ has been implementing output cuts since 2022 to support the market, with the latest cut extended until September.

Russian Deputy Prime Minister Alexander Novak announced on Monday that the global oil market is expected to stabilize in the second half of the year, attributable to the OPEC+ production supply agreement. The OPEC+ group, which consists of OPEC members and allies like Russia, has been enacting output cuts since late 2022 to maintain market balance.

On June 2, the group decided to extend the recent cut of 2.2 million barrels per day (bpd) until the end of September, with a plan to phase it out gradually from October. Last week, the U.S. Energy Information Administration forecasted that world oil demand will surpass output by approximately 750,000 bpd in the latter half of 2024, reflecting OPEC+’s reduced production rate.

OPEC's recent report also indicated a prospective oil supply deficit in the ensuing months and into 2025. Addressing the anticipated market conditions, Novak asserted, “The market will always be balanced thanks to our actions.”