May 20, 2022

The Queens County Citizen

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Oil Falls Q1 2021 Demand Forecast After OPEC Slashes

It recently agreed to a new production quota, which, along with the vaccine hype, pushed oil prices to a record high from March. OPEC cuts global energy consumption estimates by 1 million barrels per day in the first quarter of 2021, It said in a monthly report.

Demand will increase by just 500,000 barrels from that quarter – the same amount the cartel and its partners have agreed to add in January.

It sent WTI for less than $ 47 …

According to Bloomberg, the 23-nation OPEC + coalition led by Saudi Arabia and Russia will meet on January 4.

“Uncertainties are high, mainly over the development of the Kovid-19 epidemic and vaccines, as well as the structural impact of Kovid-19 on consumer behavior, mainly in the transportation sector.” The Vienna-based secretariat of OPEC said in a report.

The alliance is currently idle at 7.7 million barrels per day or 8% of world production. In three weeks, it will decide whether to restore an additional 2 million barrels in addition to the 500,000 barrels per day following the January increase.

In addition, Reserves in developed countries hit 200 million barrels in October, above their five-year average. According to an OPEC report.


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