Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
OPEC+ has lowered its 2021 oil demand growth forecast by 300,000 bbl/d reflecting concerns about the market’s recovery, a report from its experts panel meeting seen by Reuters showed.
The Joint Technical Committee, which advises the group of oil-producing nations that includes Saudi Arabia and Russia, met on March 30 ahead of a ministerial meeting on April 1 to decide output policy.
“Despite the ongoing destocking of commercial OECD stocks, they remain above the 2015-2019 average, while recognizing that prevailing volatility in the market structure is a signal of fragile market conditions,” the panel said in the report.
Under its base-case scenario, it now expects oil demand to grow by 5.6 million bbl/d this year, down by 300,000 bbl/d from its previous forecast.
It also raised its global supply growth forecast by 200,000 bbl/d to 1.6 million bbl/d.
As a result, it now sees oil stocks in the industrialized world dipping below the 2015-19 average in August, a month later than it previously forecast.
OPEC and allied producers, a group known as OPEC+, are currently curbing output by just over 7 million bbl/d in a bid to support prices and reduce oversupply. Saudi Arabia has added to those cuts with an additional one million bbl/d.
Recommended Reading
Aethon Cuts Rigs but Wants More Western Haynesville Acreage
2024-03-28 - Private gas E&P Aethon Energy has drilled some screamers in its far western Haynesville Shale play—and the company wants to do more in the area.
Energy Transition in Motion (Week of March 28, 2024)
2024-03-28 - Here is a look at some of this week’s renewable energy news, including proposals submitted to develop about 6.8 gigawatts of wind projects offshore Connecticut, Massachusetts and Rhode Island.
SLB to Acquire Majority Stake in Aker Carbon Capture
2024-03-28 - SLB and Aker Carbon Capture plan to combine their technology portfolios, expertise and operations platforms to bring carbon capture technologies to market faster and more economically, SLB said in a news release.
CERAWeek: Tecpetrol CEO Touts Argentina Conventional, Unconventional Potential
2024-03-28 - Tecpetrol CEO Ricardo Markous touted Argentina’s conventional and unconventional potential saying the country’s oil production would nearly double by 2030 while LNG exports would likely evolve over three phases.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.