IEA Warns OPEC+ Output Cuts Could Exacerbate Oil Shortages in H2 2023

The International Energy Agency (IEA) stated that rising global oil inventories may be one of the reasons for OPEC+'s decision; high oil prices will harm consumer interests and threaten economic growth; OPEC+ production cuts may exacerbate the expected oil supply shortage in the second half of 2023; By the end of 2023, additional production cuts by OPEC+ will reduce global oil supply by 400,000 barrels per day; due to weak industrial activities and warm weather, OECD demand in the first quarter will decrease by 390,000 barrels per day year-on-year; non-OECD countries led by China will contribute 90% of demand growth; global oil demand will increase by 2 million barrels per day in 2023, reaching a record high of 101.9 million barrels per day.