Oil Glut Returns To Near Pre-Pandemic Levels
The oil supply glut that built up after the pandemic forced producing countries to slash output has almost returned to normal levels, the International Energy Agency said this week.
But in its monthly report, the IEA cut its 2021 global demand growth forecast by 270,000 barrels to 5.4 million barrels a day. Demand in Europe and the Americas in the first quarter was weaker than previously thought, the IEA said. The agency cut its second-quarter forecast for Indian demand as the country struggles with high coronavirus infection rates.
The Paris-based organization left its demand estimates for the second half of the year unchanged, adding that vaccination rollout programs, rebounding economic activity and easing transport restrictions in the U.S. and Europe clear the way for crude demand to begin outstripping supply later this year.
Americans are scrambling for the pump after a cyberattacked pipeline and consumer anxiety have produced gas shortages. Meg Jacobs says the US has a long history of gas panic, and now is a crucial time to learn from it.
Oil Futures Settle Notably Higher On Inventory Data, Positive Demand Forecast Crude oil prices moved higher on Wednesday, lifting the most active crude oil futures contracts to their highest settlement in about two months, after a positive report about outlook for energy demand.
Data showing a drop in crude stockpiles in the week ended May 7 contributed as well to oil’s uptick.
West Texas Intermediate Crude oil futures for June ended down by $0.80 or about 1.2% at $66.08 a barrel.
Brent crude futures were up $0.50 or 0.73% at $69.05 a barrrel a little while ago.
Data released by Energy Information Administration (EIA) showed U.S. oil stockpiles dropped by less than expected last week. The data said crude oil inventories fell 427,000 barrels last week, as against expectations for a draw of about 2.82 million barrels.