OPEC lowers its demand forecast solely barely – Commerzbank

Anticipated demand for OPEC+ oil stays nearly unchanged

“Because the forecast for the rise in provide exterior OPEC+ was lowered by an analogous quantity on the identical time, the anticipated demand for OPEC+ oil stays nearly unchanged. That is anticipated to stay unchanged at 42.6 million barrels per day for the present yr. In comparison with OPEC+‘s oil manufacturing of round 41 million barrels per day in March, the ensuing provide deficit stays massive, leaving room for OPEC+’s deliberate manufacturing enhance.”

“OPEC’s forecast is subsequently at odds with the US Vitality Info Administration (EIA), which expects a big oversupply on the oil market this yr as a consequence of weaker demand and rising OPEC+ manufacturing. In accordance with the OPEC month-to-month report, the OPEC+ international locations certain by manufacturing quotas exceeded the agreed manufacturing quantity by an excellent 200 thousand barrels per day in March, primarily as a result of Kazakhstan produced considerably above goal.”

“Kazakhstan lowered its oil manufacturing within the first 13 days of April by 3% in comparison with the March common of 1.82 million barrels per day, the power ministry introduced yesterday, with out naming a selected amount. Nonetheless, this could nonetheless depart manufacturing properly above the agreed degree of 1.47 million barrels per day. This doesn’t embrace the cuts to compensate for the earlier overproduction to which Kazakhstan had dedicated itself.”