Oil jumped more than 3% when the IEA forecasted a record increase in oil demand in 2021
Crude oil futures jumped more than 3% on Tuesday (June 16), when a periodic report from the International Energy Agency (IEA) forecasted a rise in demand for crude oil and fuel products. record next year, but only after a significant drop this year, MarketWatch reported.
The IEA said that while world crude oil demand will drop 8.1 million barrels a day in 2020, the “largest level in history”, demand in 2021 will rise again to 5.7 million barrels a day, “an increase.” biggest annual ever recorded ”.
“The drop in demand in the first half of this year is slightly lower than forecast, although it is still unprecedented,” the IEA said. The agency also warned that the Covid-19 pandemic’s impact on the global economy should not be underestimated.
In that context, at the end of the trading session on Tuesday, WTI light sweet crude oil contract delivered on Nymex in July jumped 1.26 USD (equivalent to 3.4%) to 38.38 USD / barrel, after reaching the peak in the session above. 39 USD / carton.
Brent oil contract for August delivery on London plus 1.24 USD (equivalent to 3.1%) to 40.96 USD / barrel.
A monthly report from the Organization of the Petroleum Exporting Countries (OPEC) will be published on Wednesday (June 17), after the Organization and its allies, collectively known as the OPEC + group, agreed earlier this month to extend production cuts by nearly 10 million bpd to July and to review members’ monthly cut compliance status.
However, US oil production, which is not part of the OPEC + agreement, showed further signs of decline, with the US Energy Information Administration (EIA) on Monday (June 15) forecasting oil production. from 7 largest shale oil fields in the US will reduce 93,000 barrels / day.
Meanwhile, a meeting of the Joint Ministerial Supervision Committee (JMMC) led by OPEC to review the current level of compliance with global production cuts will be held this week.
Also in the session on Tuesday, gasoline contracts delivered in July advanced 3.6% to $ 1,2073 / gallon. Heating oil contract delivered in July soared 4% to $ 1,1822 / gallon.
Meanwhile, natural gas contract delivered in July lost 3.3% to 1,614 USD / MMBtu.