The world oil supply will exceed demand this 2023 and next yeareven taking into account the cut in production of the OPEC and their associates, according to a US report.
The US Energy Information Administration estimates that supply will exceed demand by about 530,000 barrels per day in 2024according to its Short-Term Energy Outlook released Tuesday.
Outflows from oil funds are at their highest
Los Oil prices recently registered the biggest rise of the year after the Organization of the Petroleum Exporting Countries and its allies announced a surprise supply cut starting in May. However, following the knee-jerk market reaction, many banks noted that demand from China has yet to take off and economic uncertainty continues to cloud the outlook.
In a possible harbinger of an economic slowdown, the diesel demand to contract this year compared to 2022. According to the EIA, Americans spend less on goods and more on services, which drives economic activity away from the manufacturing sector.
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