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.
Chevron Corp.announced today that it has entered into a definitive agreement with Anadarko Petroleum Corp. to acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at $33 billion, or $65 per share.
Merit Management Partners I retained EnergyNet for the sale of nonop Wyoming package located in Hot Springs County through a sealed-bid offering closing Oct. 23.
Nichols Brothers retained Continental Energy Advisors for the sale of operated assets in New Mexico, Oklahoma and Texas as part of a Chapter 11 bankruptcy.