OPEC+ committee expects oil market to return to surplus in 2022



DUBAI/LONDON (Reuters) -The OPEC+ joint technical committee (JTC) expects the to remain in a 0.9 million barrel per day (bpd) deficit this year, but hit a surplus of 2.5 million bpd in 2022 as the group raises production, a presentation seen by Reuters showed.


The JTC, under a base-case scenario, expects global oil demand to grow by 5.95 million bpd this year, in line with its previous forecast, and by 3.28 million bpd next year.





The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, meet on Wednesday at 1500 GMT to set policy.


Sources told Reuters the Wednesday meeting is likely to leave the plan unchanged despite pressure from the United States to pump more oil.


The JTC, which advises the meeting on market fundamentals, expects commercial oil inventories in OECD countries to remain below their 2015-2019 average until January next year but to exceed that average for the rest of 2022, the JTC presentation showed.


The presentation also outlined an alternative scenario, that assumes lower demand growth and non-supply growth higher than the base case.


Under the alternative scenario, the is expected to have a surplus of 400,000 bpd in 2021 and 4.5 million bpd in 2022.


(Reporting by Rania El Gamal, Alex Lawler and Ahmad GhaddarEditing by David Goodman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share Market Today
Logo