BAKU, Azerbaijan, Feb.2
By Leman Zeynalova – Trend:
From the oil supply side, limited growth from non-OPEC+ countries coupled with active market management from OPEC+ means that for 2021 a normalization of the currently high inventory levels is anticipated, Trend reports citing BP.
The company said in its latest report that oil demand is anticipated to recover in 2021.
“The speed and degree of the rebound depends on governments’ policies and individuals’ self-imposed actions as vaccine distribution proceeds. Oil prices have risen since the end of October, supported by vaccine rollout programs and continued active supply management by OPEC+ countries. Prices are expected to remain subject to the decisions of OPEC+, confidence in efforts to manage the rollout of vaccination and further virus control measures,” said BP.
The company expects the US gas market to tighten in 2021 as supply declines and demand for LNG exports recovers. “The current tightness on global LNG markets and higher US gas prices will lift other regional gas prices. US gas markets are likely to benefit from lower production and a recovery in international LNG demand driven by demand in Asia. In the first quarter of 2021 we expect material impacts in Downstream as a result of the pandemic, with increased COVID-19 restrictions resulting in lower product demand.
We expect industry refining margins and utilization to remain under pressure. In our marketing businesses we expect renewed COVID-19 restrictions to have a greater impact on product demand, with January retail volumes down by around 20 percent year on year, compared with a decline of 11 percent in the fourth quarter. – BP will continue to review all actions and respond to any further changes in prevailing market conditions.”
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