The IEA has revised up its expected ‘Call on Opec’ for 2024 by 140,000 b/d, despite warning that weak industrial activity in Europe is dragging down global demand expectations. The organization cut its forecast for oil demand growth this year to just 1.06mn b/d as a result, following from the EIA’s move last month to cut its forecast to an anemic 920,000 b/d, largely due to a higher baseline with an upwards revision to 2023 demand.

Opec+ ministers are due to meet in two weeks’ time on 1 June, with production levels for the second half of the year expected to be a key focus of discussions. Eight countries are currently implementing voluntary cuts of 2.2mn b/d through to end-June, following which they are slated to begin tapering. However, a recent softening of global demand has resulted in most observers expecting a decision to extend the cuts into the second half of the year. A decision is expected from the Opec+ meeting, although Saudi Arabia and its allies could opt to pre-empt this by announcing a decision in advance. (CONTINUED - 813 WORDS)