After a three-month decline in global oil demand caused by the spread of the delta variant of coronavirus, the card could turn significantly. Asia in particular could see a massive increase in demand for black gold, the International Energy Agency said.
“Signs of a weakening Covid epidemic are emerging, so a sharp increase in oil demand of 1.6 million barrels a day can be expected in October. The growth will continue until the end of the year, “said the International Energy Agency (IEA) in its current report. The sharp recovery in oil demand is therefore expected to continue throughout the fourth quarter.
However, according to the IEA, the full-year outlook for oil demand is about 760,000 barrels per day lower than OPEC came up with. And next year’s IEA estimate differs from OPEC’s estimate by as much as 950,000 barrels a day.
The price of brent crude has been above $ 70 a barrel in the last three weeks, and even briefly hovered above $ 74 last week. It can be expected that if oil continues to become significantly more expensive, the OPEC country, or the OPEC + group, would probably increase production so that the price of oil stabilizes at somewhere around $ 73 per barrel.