World Oil Market Prospects For The Rest Of 2021
The global oil market is recovering day by day after the pandemic. The major countries of the world are recovering from the supply. The main reason is the COVID vaccine. Most of the developed countries have successfully vaccinated their citizens. But why is the oil market growing so fast after this recovery? However, some countries have not fully recovered from this pandemic.
There are several reasons for this recovery. OPEC sees this recovery as an opportunity for a profitable business. But what about the oil traders? Well, we are here to help you know about the current situation of the oil market and how it is moving up.
Whether it is the oil market experts or the International Energy Agency, all are predicting more growth in the demand for the oil. But let's see how it will affect the whole world including the market traders. The oil trading market has been affected from the first day of the pandemic.
OPEC's action on these oil market price forecasts
The Petroleum Exporting Countries organization of OPEC is one of the most important authorities in the oil industry. Oil prices are directly influenced by OPEC and its actions.
From Arab countries to Middle Eastern countries, all oil producers are market participants of this organization. Whether it is oil demand, oil supply or oil consumption, all these factors are influenced by the decisions of OPEC. Therefore, as an oil futures investor, you need to know about these oil price forecasts from OPEC.
After there are forecasts and predictions about oil demand and it is also seen on the ground. The member countries of OPEC are increasing the production of Brent crude oil. The price of oil is also affected by this forecast but the most important factor that is affected by it is the oil production.
From Saudi Arabia to other oil companies of other OPEC members have all increased their production due to supply and demand factors. Oil and gas production is influenced along with crude oil prices.
In search of new trade contracts
Members of OPEC are always looking for new opportunities to export oil around the world. As OPEC production is increased, there will be more oil trade deals in the world.
Undoubtedly, the demand for oil as a commodity is increasing, but there are many countries that sell fuels. Therefore, more oil export deals are required from these countries along with crude oil production.
Seek exemptions in oil export taxes
Since there will be more exports, there will also be more taxes on each barrel of oil. The OPEC oil producing countries want exemptions from these taxes and other export duties. From oil companies to stocks, oil reserves, oil refineries, etc., they are looking for exemptions, rebates and even compensation.
Attempting to match pre-pandemic demand levels
According to some oil management companies and oil exporters, there is no risk of oversupply. Market volatility and liquidity are important to consider. But oil producers will strive to reach pre-pandemic demand levels. So no matter how much OPEC countries produce petroleum products. They will meet global supply with their oil exports.
How does the IEA view these oil production and oil forecasts?
According to the OPEC, their stands and actions, the whole world is also looking at the stand of the IEA. The IEA or International Energy Agency is among the most important analysts of the oil market in the world. Undoubtedly, there are also agencies like the Energy Information Administration. But the IEA publishes various reports on the oil markets.
The price of crude oil per barrel and traded oil futures in the global economic market can be affected by it. Let's take a look at all the factors related to oil storage, global oil demand and natural gas industry.
IEA: Oil 2021 Report
According to the IEA's Oil 2021 report, oil exporting countries will produce more quantities of each petroleum product. After a year and a half of economic recession or financial recession, oil will be produced in millions of barrels.
Due to higher demand, more oil will be produced and exported to other countries. Low oil prices will grow faster after half of 2021.
IEA on the oil market
The IEA forecasts that the oil market will be in recovery mode in the first half of 2021. After the second half of 2021, the oil market will grow to a high level. The demand growth will also increase the supply in the crude oil market. There will be more imports and exports for crude oil. Commodity prices will increase in every sector. Whether it is the agricultural sector or the global oil production.
The IEA has predicted that oil exporters in countries will export more. This oil market forecast is good for oil exporters. But what about the oil stock traders or oil futures traders? They too are struggling with recession problems.
Global crude is now on track in terms of price and supply and demand. But oil stocks are falling even after the recovery. And the worst part is that the IEA is forecasting that oil stocks will continue to fall even if the spot oil price is high.
Reasons for the movement of the oil market
Let's now turn to the reasons for the upward movement of the oil barrel price. Oil supply is not increasing, but what are the reasons for this rapid rally? Below are some of the major reasons cited by most oil importers and trade experts. There can be many small reasons, but these are the main reasons.
After the recovery from the pandemic, there is more transportation available in the globe. The whole world is now recovering after a long recession of more than half and year.
The economic recovery
The economic recovery has put everything back on track. People's travel spending is up. There is more spending in all markets and this recovery has also affected the oil market.
More demand after pandemic
Now that the economy has recovered and there is more transportation in the world, the demand is also increasing. The increase in oil demand is the key factor for the recovery in any industry. This is the reason why the oil market has boomed in the last few months and it is expected to rise further.
Exporting countries and their profits
Exporting countries have sniffed out the opportunities after the various forecast reports came out about the oil market. These countries are now ready to recover from all the losses incurred during the pandemic. This is also one of the main reasons for the market boom.
The world oil market and the predictions about it for the current year are coming true. The market is on the upswing and oil prices are on the rise. Not only in individual regional markets, but the global market is on the upswing.
Half of the current year is over and the oil market has recovered strongly. But the next half of the year is expected to be the golden period for this commodity. All the expert traders and the expert agencies claim that the oil market will go into profit in the next half of the year as well.
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