Rystad Energy: global oil glut set to halve in May and shrink to just 6 million bpd in June
Rystad has warned however that stock build will still overwhelm remaining global storage, which will fill in weeks.
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Rystad has warned however that stock build will still overwhelm remaining global storage, which will fill in weeks.
Following OPEC+'s agreement to cut oil production by 9.7 million bpd from 1 May 2020, Azerbaijan has announced the commitments it will take as a member.
Kazakhstan has pledged to cut its output by 390 000 bpd in May and June.
Nigeria’s state oil company has delayed publishing its future oil export plans as it negotiates with local companies and international majors about how to cut output.
Rystad Energy’s Head of Oil Markets, Bjornar Tonhaugen, has supplied a daily market comment, as oil prices rose slightly today before returning to flatter levels with marginal deviations.
The world's leading oil producers reached a deal over the weekend to cut global output by approximately 10%.
In the event of another deadlocked meeting on 6 April, Saudi Arabia will suffer a bigger hit than Russia with regards to the impact on oil and gas revenues, fiscal breakeven price, fiscal deficit and foreign currency reserves, budget deficits and domestic policy.
The oil price is soon expected to slide even lower once the extra supply becomes available from April.
Oil prices could fall into the low US$20s for the global market to rebalance, as Rystad Energy expects an increase in global supplies in the next three months.
The price war will heavily impact service company revenues, even driving some out of the market, according to Rystad Energy.
Rystad Energy now expects more than half of global oil demand growth to be lost in 2020.
Compared with recent years, both crude oil prices traded within relatively narrow price ranges throughout the year.