Following OPEC+’s announcement that crude oil production cuts will continue through to 2024, global production rates will be lower than previously projected.
That’s according to analysis by the US Energy Information Administration (EIA), which says these will drop further with Saudi Arabia’s voluntary cut of one million barrels of oil per day in July.
Although the EIA expects there to be less production, it still predicts growth in the coming two years – mainly due to non-OPEC nations.
It places the blame for a growth in gasoline and jet fuels at the door of China.
Responding to fossil fuels, the analysts believe there will be a 24% uptick in electricity made from solar compared with last year – as there has been a large global increase in solar capacity.
Crude oil production will be less than expected, however, the same cannot be said for other oil markets.
EIA Administrator Joe DeCarolis said: “We expect to see demand for travel continue to increase, which drives our forecast for record consumption of petroleum products. The petroleum market remains highly uncertain, so we will continue monitoring developments and tracking supply and demand dynamics.”