U.S. Sees Global Oil Supply Exceeding Demand Even With OPEC Cuts

Oil prices recently surged the most this year after the Organization of Petroleum Exporting Countries and its allies announced an unexpected supply cut beginning in May. However, following the knee-jerk market reaction, many banks noted that China’s demand has yet to take off and economic uncertainty continues to muddle the outlook.

In a potential harbinger of economic slowdown, diesel demand is expected to contract this year compared to 2022. Americans are spending less on goods and more on services, shifting economic activity away from manufacturing, the EIA said.