Higher production to weigh on oil prices, say analysts The Punch
Published 22 July 2021
Higher crude oil production by the Organisation of the Petroleum Exporting Countries and its allies will weigh on prices, analysts at Capital Economics, a London-based economic research firm, have said.
They said the OPEC+ agreement, signed on Sunday, should help to stabilise oil prices. Brent crude is expected to trade in a narrow band of between $70 and 75 per barrel over next six months.
“But we expect Brent to fall into the $60-70 range in 2022 as more global supply comes onto the market,” the Assistant Commodities Economist, Samuel Burman, said in a note.
2021-07-22 03:20:53 GMT2021-07-22 11:20:53(Beijing Time)
VALLETTA, July 21 (Xinhua) Global oil demand is rising following an accelerated vaccination campaign and an economic recovery, pushing oil prices to two-and-a-half-year highs amid an output deficit.
Although an agreement for more output reached among the Organization of the Petroleum Exporting Countries (OPEC) and its allies on July 18 is expected to calm rising oil prices, concerns for a further climb in the coming months or longer remain, which would dampen a global recovery from the COVID-19 pandemic.
RISING OIL OUTPUT
OPEC together with non-OPEC countries, known as OPEC Plus, agreed to boost oil production by 400,000 barrels per day (bpd) each month from August until December this year as demand increases.
U.S. inventories rise for first time since May - EIA
LONDON, July 22 (Reuters) - Oil prices rose on Thursday, extending strong gains made in previous sessions on expectations of tighter supplies until the end of the year as economies recover from the coronavirus crisis.
Brent crude rose 27 cents, or 0.4%, to $72.50 a barrel at 0830 GMT, after rising 4.2% in the previous session. U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to $70.63 a barrel, after rising 4.6% on Wednesday. Some soft spots have emerged in the oil demand recovery, but this is unlikely to change the outlook fundamentally, Morgan Stanley said in a note.
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Excess supply turns crude oil price bearish amid new Delta variant concerns
Wed, 21 July 2021
Crude oil prices on Monday dipped to a low of $65.53 a barrel after trading at a record high of $76.93 earlier this month as the new Delta variant of the coronavirus threatens economic growth across the globe.
The price of crude oil is projected to be in bearish mood as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) plan to increase production, and with the health crisis further hampering economic growth prospects.
The grouping on Sunday decided to adjust their overall production upward by 400,000 barrels per day on a monthly basis from the beginning of August.
Barclays raises oil price view, sees slow grind higher in coming months reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.