OPEC data suggests that Saudi Arabia's decision to reduce oil output will tighten the oil market

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Written By Jennifer Joslyn

🇸🇦 OPEC data suggests that Saudi Arabia's decision to reduce oil output will tighten the oil market.

Based on data from OPEC, Saudi Arabia's decision to cut oil production is expected to significantly tighten global markets in July 2023. Even before the announcement of the production cuts, OPEC had projected a rapid depletion of world inventories in the second half of the year due to a recovery in fuel demand. With the 1 million barrel-a-day reduction to be implemented by Saudi Arabia in July, the supply shortfall will intensify, resulting in global consumption exceeding supply by approximately 2.7 million barrels a day. If the production cuts are extended for the entire third quarter, it would mark the largest deficit since 2021.

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Jennifer Joslyn
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