The US Department of Energy believes OPEC + countries will not be able to agree on a new reduction in oil production following an April 9 meeting, according to a report by the Energy Information Administration (EIA). It is reported by Enkorr.
“Despite the latest news about OPEC + emergency meetings in the coming days to discuss production levels, the EIA does not expect re-conclusion of the OPEC+ agreement during the forecast period [April]”, the document says.
The ministry also lowered its forecast for 2020 at an average price of Brent crude oil by almost $10 – to $33 per barrel.
In addition, the Ministry of Energy predicts an increase in world oil reserves in storage at 11.4 million barrels per day in April-June 2020.
“According to EIA estimates, in the second quarter of 2020, global oil reserves will grow by an average of 11.4 million barrels per day, which will turn out to be the most significant growth rate... since the beginning of accounting by the management”, the document says.
The department expects that the supply on the global oil market in the coming months will remain at the level of the 1st quarter of 2020 – about 100 million barrels per day. At the same time, global oil demand this year will decrease by about 5.2 million bpd from the level of 2019 and will average 100.7 million bpd. However, in 2021, demand will grow again – by about 6.4 million bpd, according to the EIA.
To recap, on April 6, a meeting between Russia and Saudi Arabia was to be held on the issue of reducing oil production, but countries postponed the meeting and oil prices fell again.
It was previously reported that the world's largest oil and gas companies cut spending by 22% after oil prices had fallen.
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