Russia: Global Oil Market to Be Balanced in the Second Half

Russian Deputy Prime Minister Alexander Novak stated today, Monday, that the global oil market will be balanced in the second half of the year and beyond, thanks to the OPEC+ alliance's production agreement. In response to a question about the oil market conditions in the second half of the year, starting in autumn when the OPEC+ alliance begins to reverse some production cuts, Novak said, "The market will always be balanced due to our actions." The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, has been implementing a series of production cuts since late 2022 to support the market. The alliance agreed on June 2 to extend the previous cut of 2.2 million barrels per day until the end of September and to gradually unwind it starting from October. The U.S. Energy Information Administration reported last week that global oil demand will exceed production by about 750,000 barrels per day in the second half of 2024 due to reduced OPEC+ output. An OPEC report last week also indicated a shortfall in oil supplies in the coming months and in 2025.