Global oil supply slumped in April

According to the IEA's "Oil Market Report" for April, the decrease in the country's production by approximately 1 million barrels per day due to the sanctions imposed on Russian oil exports after the Russia-Ukraine War played the most important role in the decline in global supply. This amount was recorded as the biggest loss in Russia's oil supply since February last year.

While the difference between the monthly production level of the OPEC+ group, which consists of the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, and the announced production targets, was 1 million 300 thousand in March, this figure increased to 2 million 700 thousand barrels per day in April. The group, which could not increase its production capacity due to technical reasons, experienced a production loss of around 400 thousand barrels due to unplanned disruptions in the export terminals of Libya and Kazakhstan.

The production of the USA, which is not included in the OPEC+ group, increased by around 380 thousand barrels per day.

According to the report, OPEC crude oil production increased by 50 thousand barrels in April compared to the previous month and reached 28 million 670 thousand barrels per day.

In this period, non-conventional OPEC production other than crude oil was recorded as 5 million 36 thousand barrels per day. Thus, OPEC's total oil production amounted to 34 million 3 thousand barrels per day last month.

The daily oil production of non-OPEC countries, on the other hand, decreased by 810 thousand barrels compared to the previous month and became 64 million 920 thousand barrels.

Accordingly, global oil production decreased by 710 thousand barrels per day in April to 98.14 million barrels per day.

Global oil demand forecast down
The IEA revised down global oil demand for this year on the grounds that strict lockdown measures against Kovid-19 cases across China caused a slowdown in the economy of the world's second-largest and fastest-growing oil-consuming country.

The IEA reduced its global oil demand forecast for this year by 10,000 barrels to approximately 99 million 400 thousand barrels. Global oil demand was at the level of 97 million 550 thousand last year.

In the report, it was stated that the Russia-Ukraine War suppressed demand by supporting the upward movements in oil prices, while the demand-side effects of these two factors were somewhat compensated in the first quarter of the year thanks to the increasing oil demand of Western countries.

In the last quarter of the year, it is predicted that the pressure of rising oil prices and negative economic indicators on demand will increase even more, causing a decrease in demand by 230 thousand barrels per day.

While the Asia-Pacific Region is expected to lead the oil demand with 36 million 921 thousand barrels per day this year, it is estimated that this region will be followed by the Americas with 30 million 917 thousand barrels and Europe with 14 million 265 thousand barrels.