Slow EM Vaccination Hinders Oil Demand

The market remains tight, with swing producers, OPEC+ and US shale, reluctant to bring additional capacity online to cope with near-term shortfalls.

Mark Taylor 13 July, 2021 | 13:01
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Globally the vaccine rollout continues, with an accompanying drop in infections, and recovery in oil demand. Each week oil inventories have declined further pushing prices higher. Brent crude currently sits near US$75 per barrel, a circa 10% increase on a month ago. Generally, we expect the dynamic to continue for the next 18 months with steadily increasing demand allowing for a gradual return of OPEC+ volumes and some US growth. The latter is likely to limit oil price appreciation in the longer-term.

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Mark Taylor  Mark Taylor is a stock analyst for Morningstar.

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