EIA forecasts that global oil reserves will fall in the fourth quarter of this year regarding a three-month extension of voluntary cuts in Saudi production.
The U.S. Energy Information Administration said in its monthly report that after a voluntary cut in Saudi Arabia’s production by 1 million barrels per day which was supposed to end at the end of September but was extended to the end of 2023, the world’s oil reserves are expected to fall by 200,000 barrels per day in the fourth quarter.
Meanwhile, the US Energy Information Administration increased its forecast for global oil demand growth by 50,000 barrels per day in 2023, at 1.81 million barrels per day. But the agency cut its forecast for oil demand growth in 2024 to 250,000 barrels per day, at 1.36 million barrels per day.
The U.S. Energy Information Administration report said a decline in global oil reserves pushed Brent prices in the fourth quarter to an average of $93 per barrel, while the August average was $86.
According to the agency, the average price of Brent oil will fall to $87 by the second half of 2024, when reserves rise.
Joe Ducarolis, director of the Energy Information Administration, stated:  high oil prices combined with uncertain economic conditions may reduce demand for petroleum products by the end of 2024.
U.S. oil production is expected to rise by 870,000 barrels per day in 2023 to a record 12.78 million barrels per day, higher than the agency’s 850,000-barrel growth forecast last month. U.S. oil production is also projected to increase by 380,000 barrels per day in 2024 to 13.16 million barrels per day.