• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 14 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 31 mins Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 50 mins CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 1 hour NordStream2
  • 20 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 6 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 5 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years
  • 6 days Peak oil - demand vs production

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