BAKU, Azerbaijan, June 9
By Leman Zeynalova - Trend:
OPEC is expected to drive the oil supply growth in 2021, Trend reports with reference to the US Energy Information Administration (EIA).
EIA expects the supply of liquid fuels globally will average 92.6 million b/d in the second quarter of 2020, down 7.9 million b/d year over year. The declines reflect voluntary supply cuts by OPEC+ and reductions in drilling activity in the United States because of low oil prices.
Supply of oil fell by less than demand in the second quarter, and EIA expects supply to be slower to increase. In the forecast, the global supply of oil declines to 92.0 million b/d in the third quarter before rising to an annual average of 97.4 million b/d in 2021. EIA expects OPEC to drive supply growth in 2021.
The demand for global petroleum and liquid fuels will average 83.8 million barrels per day (b/d) in the second quarter of 2020, 16.6 million b/d lower than at the same time last year, according to the EIA report.
Lower demand is the result of COVID-19-related shutdowns throughout much of the world.
As stay-at-home orders are eased, EIA expects liquid fuels consumption will rise to an average of 94.9 million b/d in the third quarter (down 6.7 million b/d year over year).
EIA forecasts that consumption of petroleum and liquid fuels globally will average 92.5 million b/d for all of 2020, down 8.3 million b/d from 2019, before increasing by 7.2 million b/d in 2021.
The faster recovery of global oil demand and steeper declines in global oil production are bringing markets closer to balance sooner than EIA forecast in the May STEO.
EIA forecasts global petroleum inventory withdrawals in June 2020, averaging 1.9 million b/d, compared with a 1.6 million b/d inventory build EIA had forecast in the May STEO.
EIA forecasts global inventory withdrawals will average 3.0 million b/d for the second half of 2020.