The oil market is set for a deficit from August onwards, even after OPEC+ eases the current cuts that are up for a tentative extension through July, Rystad Energy analysts said on Friday.
Assuming that global demand recovery continues in the coming months, the oil market will still be in deficit even after the OPEC+ group relaxes the current cuts from 9.7 million bpd to 7.7 million bpd, as currently planned, Rystad Energy’s Head of Oil Markets, Bjornar Tonhaugen, said, as carried by Oilfield Technology.
“That will ensure a fundamental support for prices, while also spurring a quicker reactivation of curtailed US oil production, and eventually frac crews ending their holidays early,” Tonhaugen said in a note.
“Indications show that a bit more than 300 000 bpd from shut US production is actually coming back online already from June as a result of the current price levels,” he said. read more