OPEC Projects 2021 Surge in Crude Demand

OPEC Projects 2021 Surge in Crude Demand

Oil was up more than 2% on Friday after the International Energy Agency revised its 2020 oil demand upwards by 400,000 barrels per day. In the case of Iran, exports fell from 60.519 billion dollars in 2018 to almost 19.233 billion in 2019, a 68 percent decline, the survey noted.

OPEC+ will meet on Wednesday to discuss whether to keep in place production cuts of 9.6 million barrels per day (bpd) or roll them back, possibly by 2 million bpd.

According to him, the discussion focused on developments in the global oil markets, the improvement in demand for oil and progress toward full implementation of the OPEC+ agreement.

Brent crude traded at $43.25 per barrel yesterday.

Iraq and the U.A.E. - two of the biggest OPEC producers - along with Qatar increased their official selling prices of so-called medium-sour varieties for August from a month earlier.

"This assumes that COVID-19 is contained, especially in major economies, allowing for recovery in private household consumption and investment, supported by the massive stimulus measures undertaken to combat the pandemic", OPEC said.

"It is possible crude oil may not have anything positive to correlate to if banks and airlines set the tone on Tuesday", Robert Yawger, director of the futures division at Mizuho Securities USA, said in a note to clients.

"OPEC sees 2021 oil demand recovering to grow by an all-time high of 7 million bpd".

OPEC and Russian Federation were expected to ease their supply cuts as global oil demand has recovered and prices have bounced back.

Opec+ will hold a video conference on Wednesday to review the deal. Due to the reason of virus spread, every country around the world started to impose a lockdown meaning that no one would go out to do anything.

Cooperation within the cartel has thus far been effective in supporting global oil prices through the current economic downturn.

The Agency estimated that global oil demand this year will average 92.1 million barrels a day, down 7.9 million barrels a day from 2019, a slightly smaller decline than forecast in the June forecast.

Saudi Arabia, meanwhile, gave as least five Asian customers less August-loading crude than they had sought, said people with knowledge of the companies' procurement.

Oil prices, which are now trending at four-month highs, sank for the second day on the news of a possible supply increase from Opec and allied producers. The IEA noted that "demand rebounded strongly in China and India in May".

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