- IEA published their September monthly report where the group said growth in oil demand is expected to come to a grinding halt in 4Q2022 as the economic slowdown deepens
- The IEA cut its forecast for demand growth this year by 0.110 MMBbl/d to 2 MMBbl/d while keeping its 2023 growth forecast of 2.1 MMBbl/d
- This year, Chinese oil demand will decline by 0.420 MMBbl/d, or 2.7%, marking the first yearly decline since a 1% decline in 1990, said IEA
- The group added that oil consumption is set to decline as Covid-19 lockdowns and a real estate crisis hinder growth in the second-largest oil-consuming nation
- OPEC+ released their September Oil Market Report yesterday, where the group maintained global 2022 crude demand growth at 3.1 MMBbl/d
- The bloc also reaffirmed that the paper and physical markets continue to be in stark dislocation amid increased volatility
- Additionally, OPEC+ maintained its 2.1 MMBbl/d projection for non-OPEC production growth in 2022
- Meanwhile, Saudi Arabia's crude output increased to over 11 MMBbl/d in August, the highest level since April 2020
- The Biden administration is reportedly considering refilling the Strategic Petroleum Reserve at $80/Bbl (BBG)
- Officials in the Biden administration are debating the timing of such a move in order to safeguard U.S. oil production growth and prevent a sharp decline in crude prices, according to people familiar with the matter
- The discussions come as WTI drops to almost $81/Bbl, its lowest level since January, after plunging last week
- Biden ordered the release of a record 180 MMBbl of oil from the reserve in March in an attempt to resolve supply issues and the sharp increase in gasoline prices in the U.S. following Russia's invasion of Ukraine
- In addition, authorities are now aiming to slow those releases to control the market going into the winter
- Meanwhile, the Strategic Petroleum Reserve has dropped to 442 MMBbl, its lowest level since 1984