World oil supply fell by 190,000 barrels per day in November after the Persian Gulf countries began to cut production under the OPEC+ deal, according to the November report of the International Energy Agency (IEA). The oil supply decreased for the first time in five months.
"World oil supply fell 190 kb/d in November to 101.7 mb/d, breaking a five-month uptrend, after Saudi Arabia and other Gulf countries curbed supply in line with lower OPEC+ output targets," the report says.
However, an even greater reduction in supply is expected in December in the context of an embargo on Russian oil supplies to the EU and the introduction of a price cap by the G7 countries.
On December 4, the countries participating in the OPEC+ agreement decided to maintain the current oil production plan, which provides for a reduction in production by 2 million bpd from November 2022 until the end of 2023. The final communique notes that OPEC+ members confirm their readiness to meet at any time and take the necessary additional measures in response to the market situation in order to maintain a balance of supply and demand.
