The Organization of the Petroleum Exporting Countries and its allies (OPEC+) forecast an oil supply deficit in August and in the rest of 2021 as economies recover from the impact of COVID-19.
OPEC+ will meet on July 1 to discuss supply for the upcoming months.
With oil at its highest since 2018, a further boost in August will be discussed, Reuters reported, citing sources. But some producers are wary about new demand setbacks and higher Iranian supply.
According to OPEC’s latest monthly oil market report, the demand for its crude suggests, if output levels stay the same, OPEC supply will fall short of expected demand by 1.5 million bpd in August. The shortfall widens to 2.2 million bpd in Q4 2021.
OPEC+ cut output by a record 9.7 million barrels per day (bpd) last year. As of July, the curbs in place will stand at 5.8 million bpd.
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