- A tighter oil supply and demand imbalance has fueled oil’s rally, but an Iranian nuclear deal could be around the corner
- A flurry of diplomacy in Vienna has spurred renewed optimism of a breakthrough in talks to reassemble Iran’s nuclear deal (Bloomberg)
- U.S. oil production will grow even more than the government previously expected
- The Energy Information Administration said oil output will average 12.6 MMBbl/d in 2023, a 200 MBbl/d increase from its previous estimate
- The current all-time high of 12.3 MMBbl/d was set in 2019
- Production for 2022 was also revised higher to 11.97 MMBbl/d from an earlier projection of 11.8 MMBbl/d, the EIA said in its monthly Short-Term Energy Outlook
- “We expect downward price pressures will emerge in the middle of the year as growth in oil production from OPEC+, the United States, and other non-OPEC countries outpaces slowing growth in global oil consumption.” (EIA)