Oil is very likely to return to $ 70 a barrel in the coming months as rising global demand tips the balance in the positive.
That’s according to Rystad Energy oil analyst Louise Dickson, who made the comment in a statement sent to Rigzone on Monday. Dickson stressed in the statement that it is very likely that the price plateau will be reached despite a drop in demand in India.
“Total demand for Indian petroleum products such as gasoline, diesel and jet fuel, will dip below the four million barrels per day threshold in May 2021 as new Covid-19 restrictions restrict mobility,” said Dickson.
“India’s demand for less than four million barrels per day for oil is concerning and well below pre-virus levels of around five million barrels per day, but remains rather resilient when compared to the drop to 3,” 1 million barrels per day in April 2020, ”Dickson added.
India’s nervousness is currently preventing oil prices from continuing to rise but, with barrels delivered in June, prices could rise due to seasonal additions to oil appetite and the removal of Covid-19 restrictions in the region. Most countries in the world supporting demand more ”continued the representative of Rystad.
Dickson noted that between now and the end of June, Rystad sees demand for oil jump by at least three million barrels a day. Dickson said that would offset India’s boom and be enough to accommodate additional barrels of OPEC +.
At the time of writing, Brent prices stood at $ 68.14 per barrel. Brent closed just under $ 70 a barrel over several days in the first half of March.
According to the latest information from the World Health Organization, there have been more than 200,000 cases per day of Covid-19 in India since April 15 and more than 2,000 deaths per day since April 21.
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