22 C
Georgetown
Monday, April 12, 2021

OPEC sees positive oil market outlook

Must Read

For Guyana, retaining the resource-rich Essequibo region ‘is a life-or-death matter’ – Ivelaw Griffith

Ivelaw Lloyd Griffith, former Vice Chancellor of the University of Guyana and Senior Associate with the Center for Strategic...

Canada-Guyana Chamber says now is the time to invest in economy projected to be world’s most oil intensive by 2025

The expanding oil and gas operations in Guyana will have a significant impact on other industries in the country,...

Touchstone confirms ‘liquids rich’ natural gas discovery in Trinidad and Tobago

Canada-based oil and gas company Touchstone Exploration Inc. said on Monday the completion of flowback testing of the Cascadura...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(Reuters) – OPEC sees a generally positive oil market outlook with last year’s uncertainty easing, but downside risks caused by the pandemic persist, the group’s secretary general and its experts said on Tuesday.

“We have come a long way from a year ago,” OPEC chief Mohammad Barkindo said. “The days of GDP and oil demand figures being in the red because of the pandemic-induced shock appear to be behind us.”

Barkindo was speaking before Tuesday’s meeting of the Joint Technical Committee (JTC), which reviews the oil market for the Organization of the Petroleum Exporting Countries, Russia and other allies, a group know as OPEC+.

OPEC+ ministers hold a full meeting on Thursday.

The market widely expects them to ease their production cuts, which were the deepest ever, by around 1.5 million barrels per day (bpd), with OPEC’s leader, Saudi Arabia, ending its voluntary production cut of 1 million bpd.

However, a JTC document, which was seen by Reuters, called “for cautious optimism,” citing “the underlying uncertainties in the physical markets and macro sentiment, including risks from COVID-19 mutations that are still on the rise”.

It also said it believed a recent oil price rally might have been caused more by financial players rather than improvements in physical oil market fundamentals.

Barkindo said OPEC expected oil demand in 2021 to grow by 5.8 million bpd to about 96 million bpd. That compares with about 100 million bpd in 2019, before demand plummeted in 2020 due to the pandemic.

“The encouraging global economic developments and resilient demand in Asia are upside factors,” he said, although he noted that the downside risks of the continuing pandemic meant there was cause to only be cautiously optimistic.

“Progress on COVID-19 vaccinations continues in many countries, but the current pace shows that many developing countries risk being left behind,” he added.

OilNOW TV

Latest News

Canada-Guyana Chamber says now is the time to invest in economy projected to be world’s most oil intensive by 2025

The expanding oil and gas operations in Guyana will have a significant impact on other industries in the country,...

For Guyana, retaining the resource-rich Essequibo region ‘is a life-or-death matter’ – Ivelaw Griffith

Ivelaw Lloyd Griffith, former Vice Chancellor of the University of Guyana and Senior Associate with the Center for Strategic and International Studies says a...

Total, CNOOC enter agreements with Uganda and Tanzania for $3.5 billion pipeline

(Reuters) -Uganda, Tanzania and oil firms Total and CNOOC on Sunday signed agreements that will kickstart the construction of a $3.5 billion crude pipeline...

Touchstone confirms ‘liquids rich’ natural gas discovery in Trinidad and Tobago

Canada-based oil and gas company Touchstone Exploration Inc. said on Monday the completion of flowback testing of the Cascadura Deep-1 well in Trinidad and...

Exxon’s Greater Guyana Initiative brings Zoom Rooms project to University of Guyana

The University of Guyana (UG) on Saturday launched its Zoom Rooms project which it says lays down the first building blocks for its blended-learning...

More Articles Like This