Oil snowballs 5% as IEA brightens outlook, OPEC+ raises full-year demand forecast



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Oil snowballs 5% as IEA brightens outlook, OPEC+ raises full-year demand forecast

On Wednesday, both US and Brent crude futures’ prices jumped as much as 5 per cent after Paris-based International Energy Agency (IEA) had reported that the OPEC+ member states might need to pump an additional 2 million barrels per day (bpd) on second half of 2021 to cope up with an abrupt demand-surge, while OPEC+’s raise of full-year demand forecast up to 5.95 million bpd coupled with a decline in US inventories last week as cited by the US EIA (Energy Information Administration), had boosted up optimisms further over a sweeping reversal of oil demand.

In point of fact, in the day’s crude oil market had opened up on a cheery note following a report from Paris-based IEA that global oil demand and supply might be en-route to a swift rebalancing by second half of 2021 adding oil producing nations might need to pump an additional 2 million bpd to meet a rapid demand-surge as beforementioned.

Apart from that, crude oil futures’ prices were supported further on later part of the day following release of a US EIA report that said the US crude inventories declined by 5.9 million barrels last week, while OPEC+ had raised its full-year demand forecast by 70,000 bpd to 5.95 million bpd on Tuesday, sending oil traders’ morale to a state of bliss.

Crude oil climbs 5 per cent after upbeat IEA report

Citing statistics, in the day’s commodity market closure, UK crude futures’ prices jumped 4.6 per cent to $66.58 a barrel, while US West Texas Intermediate (WTI) crude oil futures’ gained as much as 4.9 per cent to settle down at $63.15 per barrel.

Meanwhile, referring to a growing investors’ optimism over the latest International Energy Agency report, a partner at Again Capital in New York, John Kilduff said, “That IEA report is one of the best ones we’ve seen them publish in a while in terms of being optimistic about the continued rebound in demand”.