After the International Energy Agency said that the demand for oil and its products has slowed down, Brent oil price fell 0.7% to $ 70.82 a barrel, after falling to 13 cents. According to the latest data, U.S. oil prices fell by 0.8%; shares fell 0.2% on the barrel on Thursday. The benchmarks are improving this week.
Delta Variant and Forecasts
According to JPM Commodities Research, global demand recovery seems to be stalling at this point. Hence, Goldman Sachs has cut its global oil deficit estimate from 2.3 million barrels to 1 million barrels in the short term as demand should decline in August and September. Specialists hope that with the increase in vaccination rates, the demand will also increase.
The IEA forecasts that growth will slow further in the second half of 2021 as new COVID-19 restrictions, imposed in several major oil-consuming countries, particularly Asia, reduce oil consumption and mobility.
JPM Commodities Research mentioned that oil demand will reach 98.3 million barrels in August and average 97.9 million barrels in September, less than today.
Despite the rapid development of humans, OPEC on Thursday announced that the oil supply base had increased to 2022. It is considering new targets. The chief economist at Capital Economics has suggested there is a high probability that supply-related plans will change.
A senior OANDA analyst links the established reality to the influence of the delta variant.
Banks have also reduced demand forecasts shortly.
The U.S. demand for more oil supplies to OPEC countries should normally be considered. However, if this happens, the result will take at least a few months.
Making predictions at this point is quite difficult. Also noteworthy is the prevalence of Covid 19, the economic situation of the countries, and the overall global picture.
One thing is for sure, the Delta variant demand recovery.