Saudi Arabia’s Production Cuts Threaten a Surge in Oil Price Volatility, IEA Warns
- Russia-Saudi alliance is ‘formidable challenge’ for oil market
- Supplies face significant shortfall as Saudis extend curbs
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Oil supply cuts by Saudi Arabia and Russia will create a “significant supply shortfall” and threaten a renewed surge in price volatility, the International Energy Agency warned.
Global oil markets face a deficit of 1.2 million barrels a day during the second half of 2023 following last week’s announcements by the OPEC+ leaders that they’ll extend cutbacks to the end of the year, the agency said. It’s smaller than projected last month, as a result of historical changes to demand estimates, but still poses risks for consumers.