Sign Up for FREE Daily Energy News
CDN NEWS  |   US NEWS  | TIMELY. FOCUSED. REVELANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • instagram
  • youtube2
BREAKING NEWS:
Copper Tip Energy Services
WEC - Western Engineered Containment
Hazloc Heaters
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy

Goldman says more OPEC+ supply needed to balance oil market


English Français 简体中文
These translations are done via Google Translate

June 30 (Reuters) – Goldman Sachs Commodities Research said more oil production is needed from the Organization of the Petroleum Exporting Countries and allies (OPEC+) to balance the market by 2022 as supply risk looms elsewhere.

The U.S. bank forecast oil demand to rise by an additional 2.2 million barrels per day (mbpd) by year-end, leaving a 5 mbpd supply shortfall, well in excess of what Iran and shale producers can bring online, it said in a note dated June 29.

“While a large new infection wave could slow the market rebalancing, we expect OPEC+ to remain tactical in its output hikes with downside risks to global supply elsewhere pointing to a more robust outlook for crude and the upstream sector than petroleum products and the downstream sector,” Goldman said.

The bank sees a base case of 0.5 mbpd supply increase from OPEC+ producers for consecutive months, when the group meets on July 1 to discuss the threat of the Delta COVID variant, the potential return of Iran production and still slow shale response.

The Delta variant of the coronavirus is more infectious and is likely to gain more traction over other variants.

However, boosting broad recovery hopes, Mohammad Barkindo, Secretary General of OPEC said on Tuesday that demand is expected to rise by 6 mbpd in 2021, with 5 mbpd of that in the second half of the year.

Meanwhile, negotiations to revive the Iran nuclear deal paused this month after hardline judge Ebrahim Raisi won the country’s presidential election.

A deal could lead to Iran exporting an extra 1 million bpd, or 1% of global supply, for more than six months from its storage facilities.



Share This:



More News Articles


New SHOWCASE Directory Companies

 

Muddy Boots
The Coverall Shop
Delta Remediation Inc.
Axis Communciations
Payload Technologies Inc.
Vista Projects Limited
Smart-Project Management Inc. / Trusted Pipeline Advisor
Di-Corp