According to the latest Oil Market Report from the International Energy Agency (IEA), the world’s production of crude oil rose by 790,000 barrels per day (bpd) in August, driven by increased production in Libya, Saudi Arabia, and the UAE.
The biggest production gains were made in Libya, where the state-owned National Oil Corporation (NOC) says it has restored its oil production to 1.211 million bpd following a period of disruptive blockades. This and the smaller gains in the UAE and Saudi Arabia, however, have been offset by lower production in Russia, Kazakhstan, and especially Nigeria, where production has dropped to below a million bpd as the industry deals with a number of issues.
In the report, the IEA predicts slower growth toward the end of the year and moderate growth next year:
“From August through December, growth is forecast to slow, edging up by just 280 kb/d to 101.6 mb/d. In 2022, global production is forecast to rise by 4.8 mb/d, to 100.1 mb/d, and by 1.7 mb/d in 2023 to 101.8 mb/d.”
Over in the US, meanwhile, the US Energy Information Administration has predicted that production will rise to 5.413 million bpd in the Permian Basin, where companies like Chevron and ExxonMobil, the makers of Texaco and Mobil lubricant products, exploit shale resources. Overall, the IEA expects the markets to be slightly oversupplied in the latter half of this year and roughly balanced next year, although it expects a diesel shortfall due to limited refining capacity outside of China.