In its month-to-month report, OPEC has barely raised its forecast for Oil demand subsequent 12 months, Commerzbank’s commodity analyst Carsten Fritsch notes.
OPEC’s demand forecast may be very optimistic
“On the identical time, provide outdoors OPEC+ is predicted to rise much less strongly than beforehand anticipated. Consequently, demand for Oil from OPEC+ will enhance, which factors to a tighter Oil market. Towards this backdrop, OPEC+ would have scope to additional enhance manufacturing subsequent 12 months.”
“Nevertheless, OPEC’s demand forecast may be very optimistic, with anticipated will increase of 1.3 million and 1.4 million barrels per day this 12 months and subsequent. OPEC additionally revealed figures on OPEC+ Oil manufacturing in July. In accordance with these figures, manufacturing by nations certain by quotas was 187,000 barrels per day beneath the agreed stage.”
“Kazakhstan continued to supply considerably extra, whereas Iraq and Russia produced lower than allowed on account of compensatory cuts. Saudi Arabia’s Oil manufacturing was considerably larger in June and considerably decrease in July. Nevertheless, the deviations largely offset one another.”
