← Back to Blog

Oil Market Snapshot – August 2022

  • Brent has started August below $100/bbl, with OPEC+ agreeing a tiny quota increase of 100,000 b/d, while US commercial inventories built, supported by SPR releases
  • We forecast global demand growth of 2.21 million b/d for 2022 (-120,000 b/d on previous), which would keep demand below 2019 levels for another year
  • Slowing global economic growth due to high inflation and high energy prices is hampering oil demand, with US and China seeing softer demand growth
  • We forecast global supply growth of 3.73 million b/d in 2022 (+250,000 b/d on previous), after the return of Libyan output to 1.2 million b/d and Russia’s current production recovery
  • Russian total oil production has reportedly recovered to 10.72 million b/d in July. While the EU has made transactions with Rosneft marginally easier, fuller sanctions will arrive YE22
  • OPEC+ are still cautious about increasing supplies, as any increase requires a delicate renegotiation of the deal and Saudi Arabia remains unwilling to tap limited spare capacity
  • Cuts on the OPEC side are now fully unwound, with production back to February 2020 levels
  • We se...

    Please log in to view
    the rest of this report.

    Not yet a subscriber?
    Contact us today!

    If you do not yet have an account with us and would like to register or find out more, please contact us using our client services form, send an email to admin@petrologica.com or call us on +44(0)1206 823 295.

by Graham Walker // 4 August, 2022

←   Back to Blog