Opec will have to boost crude oil production to a five-year high next year if it is to meet global demand requirements according to the IEA. The energy watchdog, in its first look at global supply and demand dynamics for 2023, puts next year’s ‘Call on Opec’ at 30.5mn b/d, up a massive 1.78mn b/d from this year as resurgent oil demand greatly outstrips anaemic non-Opec supply growth.

“Global oil supply may struggle to keep pace with demand next year,” warns the IEA in its June Oil Market Report (OMR), citing in particular the impact of tighter sanctions on Russia. “To keep the implied balance from tipping into deficit Opec+ would have to further tap into its dwindling capacity cushion, reducing it to historic lows of just 1.5mn b/d,” the IEA adds. (CONTINUED - 816 WORDS)