The International Energy Agency said that the demand for oil will exceed the production of major producers, thanks to the progress in vaccination of “Covid-19” vaccines globally.
The agency added in its monthly report that “the expected growth in supply during the remainder of this year is in no way close to being consistent with our expectations for much stronger demand after the second quarter,” in reference to the increase in pumping from OPEC Plus countries.
The Paris-based agency indicated that production from the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, the group known as “OPEC Plus”, is already below the demand for its oil by 150,000 barrels per day, and the gap is expected to widen to 2.5 million. Barrels by the end of the year.
She added that the new waves of injuries in Brazil and Thailand, especially India, the third largest consumer of oil, which is witnessing an unprecedented rate of injuries, were not enough to derail the path, but it may continue to affect the market.
And she continued: “But the (Corona) virus crisis in India is a reminder that oil demand forecasts are shrouded in a state of uncertainty, and until the pandemic is brought under control, market volatility is likely to continue.”
In addition, oil prices rose yesterday, after a decrease in US crude stocks, which strengthened OPEC’s expectations of increased demand, while the market awaits new developments regarding the suspension of the Colonial Pipeline system of pipelines in the United States.
And US crude futures, “West Texas Intermediate”, rose 29 cents, equivalent to 0.44%, to $ 65.57 a barrel, after it gained 36 cents the day before yesterday.
Brent crude futures increased 31 cents, or 0.45%, to 68.86 dollars a barrel, after rising 23 cents the day before yesterday.
“Oil markets continued their wait-and-see approach toward the hustle and bustle and the pointless moves that were witnessed elsewhere during the night,” Oanda’s chief market analyst, Geoffrey Haley, wrote in a note yesterday, adding that “the saga of the cyber attack on (Colonial Pipeline)” Forming pressure and causing now a shortage of materials in the eastern United States.
At the same time, oil prices were supported by the latest forecasts issued by the Organization of the Petroleum Exporting Countries (OPEC), which adhered to expectations of a strong recovery in global oil demand in 2021, as growth in China and the United States dominated the impact of the Corona virus crisis in India.
“OPEC” said that it expects an increase in demand by 5.95 million barrels per day this year, unchanged from its expectations last month. Nevertheless, it reduced its forecast for demand in the second quarter of the year by 300 thousand barrels per day due to the high cases of “Covid-19” virus in India.
In a related context, the Iraqi Ministry of Oil revealed yesterday that it is holding talks with the United States and China to invest gas in “Dhi Qar” and “Maysan”, indicating that the Karbala refinery will work to stop the import of oil derivatives.
Yesterday, the Iraqi News Agency (INA) quoted the spokesman for the Ministry of Oil, Assem Jihad, as saying that “Iraq has achieved through investing in gas up to 1500 million cubic meters per day, and as a result the Ministry of Oil began to develop plans, including announcing an investment plan The value of three billion in the Basra Oil Company, which will achieve an increase in gas investment, as well as an increase in production up to 40% of the national production ».
He pointed out that «the ministry will soon sign with the company (Baker Hughes), one of the arms of the (General Electric) company, to invest all the gas in the province of Dhi Qar», indicating that «the ministry has agreed with a Chinese company to invest the gas located in the province of Maysan».
An additional 500 million cubic meters in “Dhi Qar” and “Maysan”
A spokesman for the Iraqi Oil Ministry, Asim Jihad, said that “the governorates of Maysan and Dhi Qar will add up to 500 million standard cubic meters per day,” indicating that “there are advanced discussions with the company (Total) in the (Artawiyah) field for gas investment, and it will start as a first stage. By increasing production up to 300 million cubic meters in record time, this would be reflected in gas investment, which will positively affect national gas production.
Jihad added that «the ministry has achieved a great achievement in the Karbala oil refinery project in the Karbala province, which is considered one of the promising projects and a qualitative leap in the manufacturing industry and the refineries».
• OPEC Plus production is less than the demand for its oil by 150 thousand barrels per day.
Follow our latest local and sports news, and the latest political and economic developments via Google news