The turnaround in the oil market. Middle East increases supplies

In its monthly report, the International Energy Agency (IEA) indicated that "the oil market is showing initial signs of restoring balance, with global supply exceeding demand for the first time since the outbreak of the war in Iran."

According to the IEA, oil exports from the Persian Gulf increased to 74%. pre-war level, mainly thanks to increased supplies by Saudi Arabia and Iraq (despite Iranian attacks on tankers in the Strait of Hormuz). The IEA added that in October - for the first time since June - an increase in raw material stocks was recorded.

Bloomberg notes that in October, Saudi Arabia increased oil production to 10 million barrels per day, and production in Iraq reached a seven-year high of 4.6 million barrels per day.

Fall in oil prices

There will be an oversupply of approximately 2 million barrels per day in global oil markets this quarter. Bloomberg reminds that a deficit of a similar scale was forecast just a month ago.

Importantly, the International Energy Agency estimates that the oversupply that appears in the current quarter will increase significantly next year.