The International Energy Agency (IAEA) has announced that the world will have to wait for more fuel supplies by October, as hurricane losses continue to increase from OPEC.
As the Organization of Petroleum Exporting Countries (OPEC) and its partners continue to boost unemployment, consumers should expect “strong profits” in production, the agency said in its monthly report. Instead, due to unforeseen disruptions, world supply decreased by 540,000 barrels per day and disappeared this month.
“The unplanned discontinuation of production has temporarily halted the increase in world oil supply, which began in March, but growth will resume in October,” said the IAAA in Paris, which advises the growing energy sector.
Depression in fuel consumption has not had a significant impact on prices. IEA reports that global oil demand has been declining since July due to the growing number of CVD-19 cases, which impedes movement restrictions in Asia. Bold traded for $ 70 a barrel for most of New York this month.
World oil consumption averages 310,000 barrels a day from July to September each month, the EIA said. However, there are indications that the resurgence of coronavirus is declining, and that the agency expects demand of up to 1.6 million barrels per day next month, to continue until the end of the year.
Supply and demand shifts continue to decline this year’s oil-market trend. In rich economies, oil reserves fell by 30 million barrels last month, lowering 186 million barrels below the five-year average IEA estimates. “There will be another” severe fate “this month, the agency said.
According to the report, “supply will be sufficient to fill oil reserves by early 2022 alone.” Meanwhile, strategic oil reserves from the United States and China could go some way to help close the gap.
On August 29, Hurricane Category 4 struck off the coast of the United States, shutting down 1.7 million barrels of oil. Weeks later, the industry is still struggling to rebuild many of the affected areas, with the region’s crude production expected to drop by an average of 650,000 barrels a day this month, the EA said.
The total loss of raw materials could be as much as 30 million barrels.
While most OPECs increased production in August, fewer members and several co-producers declined. In addition to Saudi Arabia, Iraq and Russia, Nigeria, Kazakhstan and Mexico have not been able to make up for lost losses, with OPEC + supplying raw materials reduced by 150,000 barrels per day to 41.58 million barrels.
The group plans to rebuild another 400,000 barrels of capacity this month, but members, including Nigeria, Angola and Malaysia, will continue to fight to increase production.