“The oil price surge is despite a second wave of Covid in Europe and US (which has led to demand recovery reversal), and surge in Libyan oil output from 0.1 million barrels per day (bpd) to 1.25 million bpd,” it said.
Oil cartel OPEC plus its allies like Russia, (called OPEC+), deciding to raise output from January 2021 more modestly than earlier agreed is likely to ensure global supply deficit even in the first quarter of 2021. “Thus, OPEC+ has done its part to prevent supply surplus until the vaccine boosts demand,” it added.
Brent has risen from USD 36.9 per barrel on October 30 to USD 49.5 on December 4.
IEA estimates the global oil supply deficit at 2.1-2.8 million bpd in Q3-Q4 calendar year 2020. However, a surplus of 0.4 million was likely in Q1 2021 if OPEC+, as agreed in April 2020, was to prune output cuts from 7.7 million bpd to 5.8 million bpd from January.
#Petrol #price #2yr #high #litre #diesel