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IEA Says World Oil Supply to "Comfortably Exceed Demand" in H1 2023

OIL

The IEA increased its oil demand forecast by 100kbpd to 102mbpd for this year but it expects supply to outstrip lacklustre demand which has added weight onto global crude markets today.

  • “The [oil] market is caught in the crosscurrents of supply outstripping still-lackluster demand,” IEA wrote.
  • “Even so, world oil supply should comfortably exceed demand in the first half of the year. Building stocks today will ease tensions as the market swings into deficit during the second half of the year, when China is expected to drive world oil demand to record levels,” it continued.
  • It said that high inflation levels and the path of the Fed’s interest rate hikes are weighing on the market, while the state of the US banking sector is also posing potential risks after the SVB fallout.
  • Brent MAY 23 down -0.7% at 76.93$/bbl
  • WTI APR 23 down -0.7% at 70.81$/bbl

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