Fostering understanding of energy since 1982

The Energy Forum, Inc. is dedicated to fostering public understanding of energy issues including the energy market and industry and of the many challenges facing them in a rapidly changing world. Its regular public lectures and discussions on a variety of relevant topics provide a collegial platform where industry and academic experts, business leaders, policymakers, students, journalists and others can exchange information and ideas about energy issues and interact with one another in a non-partisan environment.

OPEC+  is expected to fully return to market by end-September the 2.2 million barrels per day of nominal voluntary supply cuts eight countries within the group made in 2022. The market has been absorbing the higher supply with minimal price impact. This has been been for two essential reasons: 1. refinery margins are robust and crude stocks are relatively low globally, so the added crude has not had the bearish consequences in the summer market; and 2. summer oil burn for power generation in the Middle East is more than one million barrels per day above Spring levels. But, the summer power generation season will be over after September, as global refinery demand for crude also falls during Autumn season. How will the market move? How might OPEC+ members respond, either individually or as a group? If OPEC+ decides when it next meets in early September to suspend the September return of voluntary cuts to markets, it would also raise questions about where prices are heading and what OPEC+ might do to put a floor under prices.