LONDON (Reuters) – Brent crude prices are approaching $ 60 a barrel, a year high, largely driven by OPEC + cuts that are poised to keep the oil market in deficit this year.
The pandemic coronovirus disease damaged the demand for oil as economies around the world had to shut down for a long time to prevent the spread of the virus.
But the oil market is running bulls, despite renewed locks in Europe and Asia to prevent the second and third waves of the virus.
(Graphic for Brent raw prices :))
A look at Brent crude time spreads will also paint a picture of a tight market.
The six-month Brent release reached around $ 2.4 a barrel back Friday, the highest level in a year. It is a backup when prices on the swift trade are at a high price to future prices, and it usually encourages traders to take oil out of storage, indicating a more volatile market. strong.
(Graphic for Brent Time Distribution :))
OPEC + has made it clear that it intends to achieve levels of oil storage in bloom caused by the pandemic.
(Graphic for global oil demand and supply 🙂
The group’s underlying position indicates that the oil market will be in deficit throughout 2021, with investments in the industrial world expected to fall below the 2016-2020 average in the second half of the year.
(Graphic for OECD Oil Products OECD Materials 🙂
(Graphic for Oil Market Balance – OPEC + case scenario 🙂
Strong compliance with OPEC +-approved oil cuts has also helped boost prices, although some countries participating in the cuts are still not compensating for the overproduction.
(Graphic for OPEC + Compliance with Production Cuts (%) 🙂
In December, harmful overproduction hit 2.69 million barrels per day, OPEC + data shows, compared to 2.46 million bpd in November, with the increase largely due to higher production from non- OPEC in Russia, Kazakhstan and South Sudan.
(Graphic for OPEC Powerful Reproduction 🙂
(Graphic for non-OPEC Cumulative Reproduction 🙂
(Graphic for OPEC Harmful + Reproduction 🙂
(Graphic for OPEC + Overproduction Compensation Plans 🙂
Reciting with Ahmad Ghaddar; Edited by Susan Fenton