In its latest oil market report published on Tuesday, the International Energy Agency (IEA) said that “current market pessimism stands in stark contrast to the tighter market balances for H2.”
Additional takeaways
Despite Russia's announced 500,000 bpd supply cut, it may be boosting volumes to make up for lost revenue.
Russian oil exports reached post-invasion high of 8.3 mln bpd in April.
OPEC+ oil supply will fall by 850,000 bpd while non-OPEC+ supply will rise by 710,000 bpd from April through December.
Global oil supply fell by 230,000 bpd to 101.1 mln bpd in April.
China’s demand recovery surpasses expectations, hit record in March of 16 mln bpd.
Demand is expected to eclipse supply by almost 2 mln bpd in second half of year.
China will account for nearly 60% of global oil demand growth in 2023.
Global oil demand is set to rise by 2.2 mln bpd in 2023 to a record 102 mln bpd.
Market reaction
WTI is unable to extend its recovery momentum after the warning issued in IEA’s oil market outlook. The US oil is trading at around $71.50, easing from session highs of $71.62, still up 0.29% on the day.
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