WTI eases from daily highs near $87 on IEA’s oil market report

In its latest oil market report, the International Energy Agency (IEA) said that OPEC+ cuts will sharply reduce a much-needed build in global oil stocks.

Additional takeaways

Russian oil exports fell by 230,000 bpd to 7.5 mln bpd in September, down 560,000 bpd from pre-war levels.

OECD industry stocks were 243 million barrels below the five-year average at the end of august at 2.736 billion barrels.

Reduces oil demand growth outlook for 2023 to 1.7 mln bpd, down by 470,000 bpd from last estimate.

New OPEC+ cuts derailed the growth trajectory of oil supply this year and next.

Actual decline in OPEC+ supply will be around 1 million bpd from November.

Higher oil prices may prove a tipping point for global economy already on brink of recession.

World oil demand will contract by 340,000 bpd year-on-year in Q422

Reduces oil demand growth outlook for 2022 to 1.9 mln bpd, down by 60,000 bpd from last estimate.

World is struggling to navigate the worst global energy crisis in history.

Economic deterioration, higher prices sparked by opec+ supply cuts are slowing world oil demand.

Market reaction

WTI is retreating from daily highs of $86.86 on IEA’s gloomy outlook on global oil demand. The US oil is trading at $86.57, still adding 0.70% on the day.