• 1 hour Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 16 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 4 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 1 day America's Frontline Doctors - Safely Start Living Again!
  • 2 hours Clean Energy Is Canceling Gas Plants
  • 55 mins Biden has Obama do a Philadelphia Rally for him. Less than 100 supporters turned out. Really.
  • 1 day Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 14 hours Vote Biden for Higher Oil Prices
  • 1 day France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 6 hours "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 1 day Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 1 day TX NATGAS flaring
  • 3 days Permian in for Prosperous and Bright Future
  • 6 hours A sneak peak into the US election
  • 2 days GPOR - Gulfport Oil - Why?
  • 2 days covid. stop the carriers and thus stop the virus.

EIA Sees Global Oil Market Balancing By End-2021

The OPEC+ production cuts and curtailments in the United States are set to help global inventories to continue drawing down for the rest of the year and most of next year, resulting in a relatively balanced market by the end of 2021, the U.S. Energy Information Administration (EIA) said on Wednesday.

The OPEC+ deal and the production drops elsewhere, most of all in North America, have brought global supply below the level of demand for the first time since the middle of 2019, the EIA estimated, noting that the supply deficit has helped bloated global inventories to decline since June.  

“EIA expects inventories to continue declining in the second half of 2020 and during most of 2021, resulting in a relatively balanced market by the end of next year,” it said in its Short-Term Energy Outlook (STEO) for September.

In August, global liquid fuels production averaged 91.5 million bpd, down by 9.7 million bpd year over year, due to the OPEC+ cuts and U.S. curtailments.

U.S. crude oil production in August rose to 10.8 million bpd from a recent low of 10.0 million bpd in May as oil operators brought some wells back online in response to rising prices after the slump in Q2, as per EIA’s estimates.

While some experts, officials, and analysts say that global inventories are declining and will continue to draw down through the rest of the year, others have flagged faltering demand recovery and resurging COVID-19 cases as reasons for being careful about the outlook on inventory drawdowns in the coming months.

Vitol Group, the world’s largest independent oil trader, for example, expects global oil inventories to continue drawing down for the rest of the year.

But another major commodity trader, Trafigura, expects a "supply-heavy" market through the end of the year, with inventories building by the end of 2020 as the demand recovery stalls. 

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News