OPEC is seriously considering limiting oil production. It’s too much on the market

According to them, the market created a surplus of oil in May and June, which they say will have to be compensated in August and September. But the OPEC+ group’s documents do not indicate how the 2.31 million barrels per day reduction in oil production should spread between countries, nor by how much production is expected to fall in August and by how much in September. It would be a further reduction in production after the OPEC+ group “sacrificed” 9.7 million barrels per day starting in May.

But limiting black gold mining is likely to be necessary. OPEC+ experts themselves expect the total drop in demand to reach more than 9 million barrels per day this year, 100,000 more than originally estimated. In an alternative scenario, an even deeper drop of 11.2 million barrels per day is foreseen. Next year, however, demand is expected to increase by about seven million barrels per day. But even this prediction is based on the assumption that there will be no massive second wave of coronavirus pandemics, and therefore it will not be necessary to quarantine large parts of the country’s economy, as it did in the spring.

 

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Sephora Stock & LVMH Investment Guide: Is Sephora Publicly Traded?

Sephora is one of the world’s most recognisable beauty...

Japan and US jointly intervene to support yen for first time in 15 years

Japan and the United States carried out a coordinated...

VUG Stock Split: What Vanguard’s 6-for-1 Split Means for Investors

Investors searching for information about the VUG stock split may have...

Dollar, Pound, and Franc: How USD to GBP and Interest Rate Differentials Drive Currency Flows

The relationship between the US dollar, British pound and...

AFP: Developers are testing ways to communicate with books using AI

More and more start-ups and digital publishers are offering...
spot_img

spot_imgspot_img