Oil was recognized as scarce

Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, commented to Kommersant FM on the oil demand in the world in 2023.

The world oil market may have the biggest deficit in the last 15 years, Bloomberg writes with reference to the OPEC report. We are talking about a shortage of supplies by 3.3 million barrels per day. This situation arose, among other things, due to the decision of Saudi Arabia to reduce production by 1 million barrels per day by the end of the year.

The trend may continue next year, and non-OPEC countries are unlikely to influence the situation, Sergey Kondratiev said:

"If we are talking about fundamental factors, then other states, in particular, Brazil, the United States, cannot significantly increase production outside of OPEC+ countries. Therefore, it is still very likely that market participants are limited by a possible unscheduled sale from strategic reserves. America and European countries may try to return to this, but I am not sure that this will be an effective strategy now. After all, market participants know that strategic reserves are already at low levels. Their further sale means the preservation and growth of oil prices in the future if Saudi Arabia, Russia and the parties to the OPEC+ agreement maintain high discipline and adhere to agreements in terms of reducing oil production."