{"id":62913,"date":"2022-06-17T05:54:17","date_gmt":"2022-06-17T10:54:17","guid":{"rendered":"https:\/\/olduvai.ca\/?p=62913"},"modified":"2022-06-17T05:54:17","modified_gmt":"2022-06-17T10:54:17","slug":"oil-markets-are-pricing-in-long-term-supply-deficits-and-opec-will-face-historic-lows-in-spare-capacity-warns-iea","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=62913","title":{"rendered":"Oil markets are pricing in long-term supply deficits and OPEC+ will face historic lows in spare capacity, warns IEA"},"content":{"rendered":"<section class=\"post-headline-wrapper\n           default-headline\"><\/p>\n<h3 class=\"post-headline  \"><a href=\"https:\/\/markets.businessinsider.com\/news\/commodities\/gas-price-outlook-iea-warns-long-term-deficits-refined-products-2022-6?fs=e&amp;s=cl\">Oil markets are pricing in long-term supply deficits and OPEC+ will face historic lows in spare capacity, warns IEA<\/a><\/h3>\n<\/section>\n<section id=\"l-content\" class=\" is-right-rail   with-rail-video-ad\" data-track-page-area=\"Post\" data-post-content=\"\">\n<section class=\"row\">\n<div class=\"col-12\">\n<article>\n<figure class=\"figure image-figure-image  \" data-type=\"img\" data-e2e-name=\"image-figure-image\" data-media-container=\"image\">\n<div class=\"aspect-ratio\"><img decoding=\"async\" src=\"https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=700\" sizes=\"(min-width: 1280px) 900px\" srcset=\"https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=400&amp;format=jpeg&amp;auto=webp 400w, https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=500&amp;format=jpeg&amp;auto=webp 500w, https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=700&amp;format=jpeg&amp;auto=webp 700w, https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=1000&amp;format=jpeg&amp;auto=webp 1000w, https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=1300&amp;format=jpeg&amp;auto=webp 1300w, https:\/\/i.insider.com\/62a9e54a6053710019ea4f42?width=2000&amp;format=jpeg&amp;auto=webp 2000w\" alt=\"Fatih Birol, head of IEA\" \/><\/div><figcaption class=\"image-caption headline-bold\" data-e2e-name=\"image-caption\">IEA Executive Director Fatih Birol.\u00a0<\/figcaption><span class=\"image-source-caption \"><span class=\"image-source headline-regular\" data-e2e-name=\"image-source\">Anadolu Agency\/Getty Images<\/span><\/span><\/figure>\n<div>\n<section class=\"post-content typography   \" data-track-content=\"\" data-post-type=\"post\">\n<div id=\"piano-inline-content-wrapper\" data-piano-inline-content-wrapper=\"\">\n<div data-component-type=\"content-lock\" data-load-strategy=\"exclude\">\n<div class=\"content-lock-content\">\n<ul class=\"summary-list\">\n<li>The IEA issued a warning for global oil markets Wednesday, saying supply challenges will persist.<\/li>\n<li>Three million barrels per day of Russian crude will disappear as sanctions set in, the IEA predicts.<\/li>\n<li>&#8220;Severely restricted refining capacity is causing markets to price in long-term supply deficits in key refined products,&#8221; the report said.<\/li>\n<\/ul>\n<div id=\"formContainer\" class=\"inline-newsletter-signup headline-regular\" data-component-type=\"inline-newsletter-module\" data-event-label=\"10_things_markets\" data-list=\"10 Things Before the Opening Bell\" data-acq-source=\"marketsverticalinline\"><\/div>\n<p>The current turmoil across energy markets is set to worsen in 2023, as OPEC+ will face severe supply challenges while fuel prices will stay high, the International Energy Agency warned in its first forecast for next year.<\/p>\n<p>The Paris-based think tank said Wednesday that global oil supplies will &#8220;struggle&#8221; to keep up with rising demand.<\/p>\n<p>In particular, it highlighted that Russian barrels will disappear from this year&#8217;s market at a rate of 3 million barrels per day as more sanctions set in. That result in overall OPEC+ production falling by 520,000 barrels per day next year.<\/p>\n<p>&#8220;OPEC+ would have to further tap into its dwindling capacity cushion, reducing it to historic lows,&#8221; the IEA said in its report.<\/p>\n<p>Over recent months, oil prices have skyrocketed thanks to dwindling stockpiles and repercussions from Russia&#8217;s invasion of Ukraine. In March, the price of Brent crude briefly hit $139 a barrel. It&#8217;s hovering near $120 Wednesday.<\/p>\n<p>US gas prices, too, have surged, recently breaking the\u00a0<a href=\"https:\/\/markets.businessinsider.com\/news\/commodities\/us-gas-prices-5-gallon-first-time-gasbuddy-oil-crude-2022-6?utm_medium=ingest&amp;utm_source=markets\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"80\">$5-a-gallon threshold<\/a>\u00a0for the first time ever. And the IEA warned prices will stay high for a while as refineries live &#8220;hand-to-mouth&#8221; amid low crude and product inventories.<\/p>\n<p>&#8220;Severely restricted refining capacity is causing markets to price in long-term supply deficits in key refined products,&#8221; the agency said. &#8220;This translates into a structurally elevated product price outlook.&#8221;<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n<\/section>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Oil markets are pricing in long-term supply deficits and OPEC+ will face historic lows in spare capacity, warns IEA IEA Executive Director Fatih Birol.\u00a0Anadolu Agency\/Getty Images The IEA issued a warning for global oil markets Wednesday, saying supply challenges will persist. Three million barrels per day of Russian crude will disappear as sanctions set in, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[9218,416,433,4629,32768,32975],"class_list":["post-62913","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-business-insider","tag-iea","tag-international-energy-agency","tag-oil-markets","tag-phil-rosen","tag-supply-deficits"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=62913"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62913\/revisions"}],"predecessor-version":[{"id":62914,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62913\/revisions\/62914"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}