Global Oil Supply Disruptions Widen Market Deficit Amid Tight Physical Supplies

Global oil supply disruptions are causing market deficit amid tight physical supplies, according to Pulkit Agarwal, Global Director of India Content at S&P Global Energy.

The ongoing conflicts and changes in demand have led to a supply-side challenge that has affected global oil and gas markets for more than six months, Agarwal said. He noted that the continued disruptions in oil supplies from producing countries could further widen the existing supply deficit.

Agarwal also pointed out that physical oil supplies remain tight, with record cracks seen in diesel prices. Despite some oil flowing through the Strait of Hormuz, he stated that the global oil market remains tight. He emphasized that several factors influence oil prices, including demand and supply dynamics.