Meeting the restored oil demand is “unlikely to be a problem,” the IEA said, forecasting that OPEC+ will still have 6.9 million bbl/d of effective spare capacity after July.
The oil market briefly plunged after being spooked by media reports suggesting sanctions were lifted on Iranian oil officials, showing the potential impact of additional Iranian barrels if a deal is struck and sanctions lifted.
While OPEC’s Barkindo noted that vaccine rollouts and the “massive fiscal stimulus” aided an upbeat outlook, uneven global vaccine availability, high inflation and continued COVID-19 outbreaks remain continued risks to oil demand.
The Chinese government has been ramping up scrutiny of the oil industry by imposing taxes on key blending fuels and investigating crude imports at state energy giants and independent refiners.
America’s LNG exporters are unveiling efforts to slash carbon emissions from new facilities as they look to keep new multibillion-dollar projects on track amid mounting climate pressures.
Cartel and its allies stick to plan to gradually lift production as demand improves.
OPEC+ sources said there were no talks on amending oil output-cut levels for July, while two more said the producers should stick to their existing series of gradual output increases.
The research division at OPEC, whose 13 members sit on 80% of the world’s crude oil reserves, produced an internal briefing document on the IEA’s report, a copy of which was seen by Reuters.