WTI Oil reaches $70.29, OPEC decides to keep the production rate
The price of oil went up slightly on Thursday. On a settlement of $ 70.29, a barrel of West Texas Intermediate became $ 0.33 or 0.5 percent more expensive.
After Wednesday’s dip, oil prices rose again above $ 70 today, according to Rystad Energy, because the market is convinced that both WTI and Brent should be trading above this level, given the current expectation of oil demand.
This seems to shake off the surge in petrol stocks in the US last week. However, according to Rystad Energy, it is a signal that “the road to a normal, precorona oil consumption has its bumps.”
In its monthly report on Thursday, OPEC left the expected growth in oil demand in 2021 unchanged at 6 million barrels per day and the cartel expects a total of 96.58 million barrels per day.
According to OPEC, the recovery in oil demand will become stronger in the second half of the year, leading to a rapid decline in oversupply. The total demand of 99.82 million barrels per day expected by OPEC in the fourth quarter is therefore only a fraction below the 2019 average for the coronavirus crisis.
OPEC has kept the expected growth in oil demand in 2021 unchanged at 6 million barrels per day. This was revealed on Thursday in the monthly report of the oil cartel.
Total demand is 96.58 million barrels per day. Furthermore, the cartel reduced the contraction in oil demand in 2020 from 9.4 million to 9.3 million barrels per day.
According to OPEC, the recovery in oil demand will accelerate further in the second half of the year, leading to a rapid reduction in oversupply. The cartel is counting on a 5% increase to 99 million barrels a day. In the fourth quarter, total demand should reach 99.82 million barrels per day, according to OPEC. This is only 150,000 barrels less than the average in 2019 before the coronavirus crisis.