Guyana Among Top Growth Drivers as Global Oil Supply to Hit Record 103.5Mn Barrel per Day This Year

• The International Energy Agency (IEA) forecasts a record-breaking global oil supply of 103.5Mn barrels per day (b/d) in 2024. Guyana leads the production surge alongside the United States, Brazil, and Canada, contributing to a collective increase of 1.5Mn b/d.
• Guyana produced 142.9Mn barrels of oil from the ExxonMobil-operated Stabroek block in 2023. Currently, its production stands at 550,000 b/d. By the end of March, the South American producer is expected to hit 600,000 b/d.
• Contrary to this trend, the Organization of the Petroleum Exporting Countries (OPEC) anticipates maintaining a steady supply, assuming the phasing out of voluntary cuts by the second quarter of 2024. 
• OPEC’s latest report projects demand for its crude to reach 28.5Mn b/d in 2024, marking a 0.8Mn b/d increase from 2023. Furthermore, it is forecasted to rise to 29Mn b/d in 2025, indicating a 0.5Mn b/d increment from the previous year.
• OPEC Secretary-General Haitham Al Ghais said, “Peak oil supply has never come to pass, and predictions of peak oil demand are following a similar trend. Given the growth trends, it is a challenge to see peak oil demand by the end of the decade, a mere six years away.” 
• Despite the geopolitical risks, oil and liquefied natural gas (LNG) production remains unaffected, yet ship owners are redirecting cargoes from the Red Sea. Hundreds of giant container ships, some more than 300m (984ft) long, are now choosing a lengthy detour around Africa instead of heading up the Red Sea and through the Suez Canal on voyages from Asia to Europe. 
• Rerouting such large vessels is no easy task; the logistics involved can be enormous and time-consuming, pushing fears that the crisis could have widespread economic impacts, pushing up prices of goods and delaying deliveries of high-value products by weeks or perhaps even longer.

(Sources: Oil Now & British Broadcasting Corporation)