BAKU, Azerbaijan, Apr.28
By Leman Zeynalova – Trend:
OPEC+ will need to weigh the risk of weaker-than-expected demand recovery over the next three months, Trend quoted Ann-Louise Hittle, vice president, Macro Oils at Wood Mackenzie, as saying.
"Another large risk to prices would be if the Iran-US talks to restore the JCPOA (Iran nuclear deal) were successful,” she said.
The 16th OPEC and non-OPEC Ministerial Meeting of the Declaration of Cooperation (DoC) has decided on the continued implementation of the production adjustment decision of the 15th OPEC and non-OPEC Ministerial Meeting (in the months of June and July).
The meeting participants noted that in March 2021, the total overconformed volumes stood at 1.23 mb/d. However, some participating countries have yet to achieve the minimum expectation of 100 percent conformity and to compensate for overproduced volumes.
"The group will increase output incrementally each month in May, June and July, along with a gradual easing of Saudi Arabia’s additional production cut of 1 million b/d. The move comes as the group tries to balance risks – including the possibility of reduced demand from India as it struggles to control a devastating wave of Covid-19 infections – with signs of demand recovery elsewhere. US oil demand is continuing to climb back toward 2019 pre-pandemic levels and a strong summer demand season is nearly certain, given the progress in its vaccination program over the last few months,” Hittle added.
Wood Mackenzie forecasts global liquids demand to rise by 6 million barrels per day (b/d) year-on-year after a steep 10 million b/d drop in 2020.
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