HomeMediaLatest NewsThe global oil market is in a situation of persistent deficit

The global oil market is in a situation of persistent deficit

01 June 2021

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov, Director of the Center for Economic Expertise, National Research University Higher School of Economics, commented to REGNUM on the OPEC's fears about the oil shortage.

“Almost all available indicators point to a recovery in global oil demand. Oil reserves continue to decline, with the price of Brent reaching $ 70 per barrel. Economic data also points to a fast recovery in the global economy, which is the main driver for oil demand, Salikhov said. - OPEC usually adheres to cautious forecasts in its assessments. A month ago, the OPEC forecasts for the growth of global oil demand in 2021 were 5-6 million barrels. Apparently, they are currently revised to 6 million barrels, which is still a conservative estimate in the current environment. We believe that demand will increase to 7 million barrels per day this year or even more."

As Salikhov explained, the world oil market is currently in a state of stable deficit - the world demand for oil exceeds the current supply. And this is primarily the result of the OPEC + policy.

"However, the likelihood of a deficit in the sense of disruption of supplies is small, since there is a large amount of unused capacities both in the Middle East and in Russia, which can potentially be returned to the market," Salikhov said.

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