Shortfall expected to reach 2.5 million bbl/d by year’s end.
U.S. oil producers have been gradually increasing drilling activity as oil prices have rebounded but output growth has been muted as investors pressure companies to rein in spending and focus on returns.
Oil prices are expected this week to drift sideways with an upward bias, while product prices in the Atlantic Basin will move upward until the Colonial Pipeline is back in service, says Stratas Advisors in its latest forecast.
While some analysts have said oil demand may never reach pre-pandemic levels, Goldman Sachs said it expected this by the end of the year and predicted Brent would hit $80 and WTI $77 within six months.
Top oil exporter Saudi Arabia has cut the June official selling prices (OSPs) of all crude grades it sells to Asia, sources say.
The oil price movement from the last week is somewhat reflective of the difference in the pace of economic recovery between the U.S., where the economy continues to show signs of a robust recovery, and the Eurozone, which has fallen back into recession, says Stratas Advisors in its latest forecast.
Mexico’s output totaled about 1.72 MMbbl/d.
A market monitoring panel decided to stick to policies broadly agreed upon at a previous April 1 meeting of OPEC+, Russian Deputy Prime Minister Alexander Novak said after the talks.
The OPEC+ joint technical committee raised its forecast for global oil demand growth in its most recent monthly oil market report while also expressing concern about rising COVID-19 cases in India and elsewhere.