Fear of oil depletion is declining as strong demand and limited supply prepare to strengthen the market and push prices up. It will be a good winter for oil producers, but more success for consumers who are suffering from high gas and electricity costs.
The rise in natural gas prices as liquidity and plumbing costs in European markets continue to plummet. Consumers want to move away from expensive natural gas to low-cost oil.
Vitol Group, the world’s largest free oil trader, expects to change its oil demand by half a million barrels this year. Consultants Facts Global Energy is seeing a similar increase, with Chinese trucks, Asian power plants and oil refineries looking for cheaper alternatives to gas. In the next two quarters, the Organization of Petroleum Exporting Countries estimates that additional demand is expected to reach 370,000 barrels per day.
Deutsche Bank has said it has limited capacity in Europe to do so, but prices for gas, electricity and coal are set to rise next summer.
These numbers may not seem huge, but oil demand will take another step in the coming months.
The recent decision to allow visitors from Europe and the United Kingdom, starting in November, will provide significant support to Atlantic Aviation. Traffic congestion and demand for fuel are still one of the last fuel needs to recover from the Covide-19 epidemic, with commercial flights still below the 20% of the 2019 standard. -Locking steps. Advisors JBC Energy reported an increase in jet fuel demand by 400,000 barrels per day in the last three months of the year.
Upward reviews are not the only ones asking questions that raise fuel prices. The supply side is also making its own.
At the end of August, hurricanes reduced the region’s production by 30 million barrels before forcing the United States to shut down the Gulf of Mexico. last month. This is the same amount lost by the two major tidal waves – Katrina and Rita in 2005, Gustav and Ike in 2008 – as the Gulf’s largest oil producer.
And Ida’s influence is not over yet. Royal Dutch PLC is working to repair the West Delta-143 transmission station, which will host Mars, Ursa and Olympus platforms, and will have less than 300,000 barrels below normal. Flows will not fully return until the beginning of next year.
Contributions from OPEC and its partners can also be frustrating. Although the group had planned to increase production by 400,000 barrels per month: the November increase is expected to be a rubber stamp when it meets at a video conference on October 4: Many members have not been able to increase production as follows. Their growing targets.
The main West African producers are Angola and Nigeria, whose production is moving in the opposite direction. Despite the country’s growing allowance, Russia’s ability to increase production has been in jeopardy since production was cut off in April.
Increased targets for the year In Saudi Arabia and Russia, two senior members of OPEC + produce more than 10 million barrels a day. That is very close to the pre-epidemic stages, especially for Saudi Arabia.
And then there’s Iran. By the end of the year, all expectations for oil exports in the Islamic Republic of Blacks had been dashed. Tehran’s new government says nuclear talks with six world powers will resume in the next few weeks, but it does not appear to be leading to a breakthrough this year.
Tie all these strong demand and weak supply indicators together, and it’s not hard to see why Benchrick Brent’s boldness is going to reach $ 80 a barrel in three years. If there had been no threat of inflation and economic stimulus, we would have already reached that critical stage. Get ready to pay to drive, and stay warm this summer.
This story was published by Wire Agency without any changes to the text.
Never miss a story! Stay connected to Mint and stay tuned. Download our app now !!