OPEC+, which groups the Organization of the Petroleum Exporting countries and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. The group agreed on June 2 to extend the latest cut of 2.2 million bpd until the end of September and gradually phase it out from October.
The U.S. Energy Information Administration said last week that world oil demand will exceed output by around 750,000 barrels per day in the second half of 2024 due to lower OPEC+ output.
OPEC's last-week report also pointed to an oil supply deficit in the coming months and in 2025.
Responding to a question about oil market conditions in the second half of the year from autumn, when OPEC+ will begin unravelling some of its production cuts, Novak said: "The market will always be balanced thanks to our actions."
(Reuters, July 15, 2024)