The issue of increasing oil supplies is still in question due to the global epidemiological situation. Despite the U.S. request and the review of the OPEC+ statement on the case, it is impossible to talk in advance about what is not under your control.
Oil prices have stabilized – the prospect of increased demand for fuel is still in doubt, as the use of air, rail, and other transport around the world is still limited due to the spread of the new Delta Strain of Covid 19.
According to current data, the dominance of the Delta Strain is so significant that fuel demand is still limited in many countries. Restrictions will be imposed on movement until the situation stabilizes.
Brent oil price increase 0.3%, up 23 cents to $ 69.26 a barrel. US crude increase 0.4% to 24 cents to $ 66.83 a barrel.
According to Avtar Sandu, senior commodity manager at Phillip Futures, the oil market can be volatile in the short run with frequent setbacks. Demand is facing off in Europe and India as oil prices begin to struggle.
India, from its Strategic Oil Reserve (SPR), has started selling oil to state-owned refineries. The world’s third-largest importer, in practice, is using a new policy to commercialize the federal repository by leasing space.
What is the Fate of Oil?
As a rule, the oil price is in dollars, so a strong dollar makes oil more expensive and exceeds demand.
According to official forecasts, in the United States, there will be more supply in the market.
According to a monthly report from the U.S. Government, oil production will increase to 8.1 million barrels in September, which will be the highest figure since April 2020.
According to an expanded Reuters poll, U.S. oil and gasoline stocks fell last week. Meanwhile, distillation stocks should rise in the third week.
According to nine analysts, crude inventories fell by about 1.1 million barrels a week until August 13.
The vaccination process has indeed been well underway worldwide for a long time. However, the power of the virus at this stage makes it less possible to talk about increasing the fuel supply. Many countries have lifted restrictions; however, in countries where the epidemiological situation is still tricky for some reason. The population consumes less fuel, and supply-demand is less of a problem for such countries.
According to experts, the supply of oil will increase after the global situation stabilizes. It will be impossible to return to old life and normalcy in a few months. However, hopefully, with the lifting of restrictions, the issue of increasing oil supplies over time will no longer be in doubt.