Oil prices went up on Tuesday amid an improved forecast for demand for the current year by the Joint Technical Committee, Interfax reports, citing Bloomberg.
The cost of June futures for Brent oil at the London ICE Futures exchange by 8:20 a.m. Kyiv time on Tuesday amounted to $66.01 per barrel, which is $0.36 (0.55%) higher than the price at the close of the previous session. As a result of trading on Monday, these contracts fell by $0.46 (0.7%) to $65.65 per barrel.
The price of June futures for WTI in electronic trading at the New York Mercantile Exchange (NYMEX) by this time amounted to $62.26 per barrel, which is $0.35 (0.57%) higher than the level at the close of the previous session. On Monday, the value of these contracts dropped by $0.23 (0.4%) to $61.91 per barrel.
The experts of the technical committee on Monday raised the forecast for growth in oil demand in 2021 to 6 million barrels per day (bpd) from the expected 5.6 million bpd in March, the delegates of the meeting said. At the same time, they believe that the excess oil reserves formed in the world market during the pandemic will completely disappear by the end of the current quarter.
OPEC Secretary-General Mohammed Barkindo also announced the improvement in the oil market outlook, citing "positive signals for the global economy." However, he stressed that many factors require constant monitoring and vigilance.
The Joint Technical Committee also warned that the difficult epidemiological situation in India, Japan and Brazil could limit the increase in oil demand.
“OPEC+ countries meeting this week need to take into account both growth prospects in China, the US and Europe and negative signals from India and several other regions,” said Axi analyst Stephen Innes. "It is unlikely that the OPEC + countries, which are in favour of increasing production, in these conditions will be able to find convincing arguments that will support their position."
As reported, the cost of oil could fall to $10 due to the electrification of energy and transport.