IEA sees world oil supply struggling to meet demand in 2023

IEA sees world oil supply struggling to meet demand in 2023

Global oil supply will struggle to meet rising demand next year, meaning consumers will continue to face tight fuel markets, the International Energy Agency (IEA) said in its first assessment of 2023. A resurgent Chinese economy will bolster consumption, while tighter sanctions on Russia will curtail oil output, the agency forecast in its latest monthly report. The OPEC+ coalition of producers would need to deplete its spare production capacity to historically low levels to satisfy demand, it said. The estimates from the IEA suggest little prospect of respite for households from high energy prices. Crude has climbed more than 50 per cent this year to trade near $120 a barrel in London, as supplies fail to satisfy the post-pandemic rebound in fuel demand. Rampant inflation is battering the global economy, raising expectations of sharp interest rate increases and a possible recession. “Global oil supply may struggle to keep pace with demand next year, as tighter sanctions force Russia to shut in more wells and a number of producers bump up against capacity constraints,” the Paris-based IEA said on Wednesday. In 2023, growth in global demand is set to accelerate to 2.2 million barrels a day, while non-OPEC+ supplies will expand