Domestic Crude Stocks Dip Again; IEA Says Global Oil Demand Outlook Brightens
U.S. crude stockpiles declined for a third straight week as domestic demand increased, federal data released Wednesday show.
A separate global forecast, meanwhile, pointed to increased oil consumption through 2021, as coronavirus vaccination programs gain momentum and economic activity increases.
In its Weekly Petroleum Status Report (WPSR), the U.S. Energy Information Administration (EIA) said domestic crude inventories for the week ended April 9 fell by 5.9 million bbl from the previous week. The tally excludes supplies in the Strategic Petroleum Reserve.
At 492.4 million bbl, EIA said U.S. stocks were 1% above the five-year average.
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A year after the pandemic and a price war sparked one of the weakest months in history for oil prices, the global energy market is well on its way to recovery, the International Energy Agency said Wednesday.
In its monthly report, the IEA raised its annual forecast for global oil demand in 2021 by 230,000 barrels a day to an increase of 5.7 million barrels a day. Earlier in the week, the Organization of the Petroleum Exporting Countries increased its 2021 demand forecast by 100,000 barrels a day. While the Paris-based organization’s forecast recovery will still leave demand 3% short of 2019 levels, investors will likely take the agency’s increased demand forecast for the final quarter of 2021 as a sign that consumption is on its way to recovering.
NEW YORK -Oil prices surged 5% on Wednesday, after a report from the International Energy Agency, followed by U.S. inventory data boosted optimism about returning demand after the coronavirus.
OPEC Raises Global Oil Demand Forecast as Mexico’s Pemex Set for Modest Production Uptick
The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday formally raised its expectations for global oil demand in 2021, citing expectations for a recovery from the pandemic and stronger economic growth.
In its Monthly Oil Market Report (MOMR), the cartel projected demand would rise by 5.95 million b/d this year, a nearly 7% increase from 2020. The estimate is up 70,000 b/d from the group’s earlier outlook in March.
“Gasoline is projected to be the key driver for oil demand recovery beginning with the onset of the summer driving season,” OPEC said in the MOMR.