Global demand for crude is projected to exceed supply next year as Opec+ extends some of its deep production cuts into 2025, according to the US Energy Information Administration (EIA).
The statistical arm of the US Department of Energy, on Tuesday raised its forecast for global oil consumption for next year to 104.7 million barrels per day from an earlier estimate of 104.5 million bpd.
Crude production worldwide is now projected to reach 104.6 million bpd, down from a previous forecast of 104.7 million bpd, the agency said in its Short-Term Energy Outlook.
Global oil stocks, or the total inventory of oil stored worldwide, will drop by 700,000 bpd in the second half of 2024 following a decrease of 500,000 bpd in the first half, the EIA said.
“Inventory withdrawals stem in part from Opec+ production cuts, which the group announced in early June would remain at current levels until at least the end of September,” it added.
Last month, Opec+ agreed to extend output cuts of 3.66 million bpd, which were initially planned to end this year, until the end of 2025.
At the same time, the additional 2.2 million bpd voluntary production cuts of eight Opec+ member states were extended by three months until the end of September.
The group also released a plan for gradually unwinding the voluntary curbs on a monthly basis from October 2024 until September 2025, but said that “the monthly increases can be paused or reversed subject to market conditions”.
Opec will release its monthly oil market report later on Wednesday.
For this year, the EIA expects crude oil demand to be 102.9 million bpd, compared to a supply of 102.4 million bpd.
Brent, the benchmark for two thirds of the world’s oil, will average $89 a barrel in the second half of 2024, up from $84 a barrel in the first half of the year, the agency said.
“Higher prices in the second half of the year result from our forecast of persistent withdrawals from global oil inventories,” it added.
The international benchmark was trading 0.64 per cent lower at $84.12 a barrel at 10.09am UAE time on Wednesday.
Last week, oil prices marked their fourth consecutive week of gains, driven by strong fuel demand and tightening supply.
Opec crude exports fell to 18.1 million bpd in June, a decrease of more than 1.6 million bpd month-over-month, marking the lowest crude export level since June 2021, UBS said last week, citing estimates from tanker tracking company Petro-Logistics.
Nearly all Opec members recorded a drop in exports last month, with large declines in Saudi Arabia, Iran, the UAE and Kuwait, the Swiss lender said.
Meanwhile, geopolitical tensions in the Middle East, driven by Israel-Hamas war, Hezbollah’s escalating military skirmishes with Israel, as well as the actions of the Houthis in the Red Sea, are causing an increase in oil prices due to added risk, analysts said.
Recent escalations in the Middle East are reintroducing a risk premium to oil prices, which we “had not seen for a few weeks,” Rystad Energy said in a research note on Tuesday.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
Imperial%20Island%3A%20A%20History%20of%20Empire%20in%20Modern%20Britain
%3Cp%3EAuthor%3A%20Charlotte%20Lydia%20Riley%3Cbr%3EPublisher%3A%20Bodley%20Head%3Cbr%3EPages%3A%20384%3C%2Fp%3E%0A
Fireball
Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.
A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.
"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.
Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
1971: The Year The Music Changed Everything
Director: Asif Kapadia
4/5
More from Rashmee Roshan Lall
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
DIVINE%20INTERVENTOIN
%3Cp%3EStarring%3A%20Elia%20Suleiman%2C%20Manal%20Khader%2C%20Amer%20Daher%3C%2Fp%3E%0A%3Cp%3EDirector%3A%20Elia%20Suleiman%3C%2Fp%3E%0A%3Cp%3ERating%3A%204.5%2F5%3C%2Fp%3E%0A
Match info
Uefa Champions League Group H
Juventus v Valencia, Tuesday, midnight (UAE)
Moving%20Out%202
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20SMG%20Studio%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Team17%3Cbr%3E%3Cstrong%3EConsoles%3A%3C%2Fstrong%3E%20Nintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20One%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Central%20Bank's%20push%20for%20a%20robust%20financial%20infrastructure
%3Cul%3E%0A%3Cli%3ECBDC%20real-value%20pilot%20held%20with%20three%20partner%20institutions%26nbsp%3B%3C%2Fli%3E%0A%3Cli%3EPreparing%20buy%20now%2C%20pay%20later%20regulations%26nbsp%3B%3C%2Fli%3E%0A%3Cli%3EPreparing%20for%20the%202023%20launch%20of%20the%20domestic%20card%20initiative%26nbsp%3B%3C%2Fli%3E%0A%3Cli%3EPhase%20one%20of%20the%20Financial%20Infrastructure%20Transformation%20(FiT)%20completed%3C%2Fli%3E%0A%3C%2Ful%3E%0A
THE BIO
Occupation: Specialised chief medical laboratory technologist
Age: 78
Favourite destination: Always Al Ain “Dar Al Zain”
Hobbies: his work - “ the thing which I am most passionate for and which occupied all my time in the morning and evening from 1963 to 2019”
Other hobbies: football
Favorite football club: Al Ain Sports Club
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
