• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days "The Calm Before The Storm In Oil Markets" by Tom Kool of OILPRICE and seen at YahooFinance
  • 6 hours Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 16 hours How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 5 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 5 days Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

OPEC Chief Sees Still Anemic Oil Demand Recovery

Global economic and oil demand recovery is still anemic, OPEC Secretary General Mohammad Barkindo said on Monday, but noted that the cartel doesn’t see another plunge in demand like in the second quarter.

“We do not expect a relapse to the massive contraction that we saw in the second quarter,” Barkindo said at the virtual 2020 India Energy Forum by CERAWeek on Monday.   

“We remain cautiously optimistic that the recovery will continue. It may take longer, maybe at lower levels, but we are determined to stay the course,” OPEC’s chief said.

The market is increasingly concerned about the pace of demand recovery as the second coronavirus wave is sweeping through the U.S. and Europe. Additional supply out of Libya and the OPEC+ plan to ease the cuts by another 2 million barrels per day (bpd) as of January 2021 have put more pressure on oil prices in recent weeks.

“We are determined to assist the market to restore stability by ensuring that the stock drawdowns continue in order to restore the supply-demand balance,” OPEC’s Barkindo said today, while speculation is growing whether the group would delay the easing of the cuts by several months until global oil demand shows positive trends.

Earlier this month, Barkindo sought to assure the oil market that the OPEC+ group would look to ensure that prices do not plummet again as they did in the spring. Keeping market stability is the top priority of the OPEC+ agreement, but “We have no illusions this recovery will take a long time,” Barkindo said on the Energy Intelligence Forum.

Early on Monday, at 9:30 a.m. EDT, oil prices were down by around 2 percent, with the WTI Crude price trading just below $39 a barrel amid concerns about both demand and supply. On the demand side, the second wave continues to weigh on the prospects of oil demand recovery, while the return of Libyan oil is bearish for oil supply. These developments have increased market talk and speculation that OPEC+ could be forced to postpone the planned easing of the cuts.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News