IEA announces that the global oil oversupply state has ended

According to Bloomberg News on May 12, the International Energy Agency said that although the Indian epidemic once again hit demand, the oversupply caused by the global epidemic has been eliminated.

The IEA said on Wednesday that the current surplus oil inventories in developed countries are only a small part of last year when demand plummeted, and that OPEC and its allies’ production cuts have exhausted the excess inventories.

The IEA stated in its monthly report: “The excessively high world oil stocks accumulated during the Covid-19 demand shock last year have returned to more normal levels.

With the recovery of fuel consumption in China and the United States, the recovery momentum of the oil market this year has continued, pushing the price of international crude oil in London to approximately US$69 per barrel.

According to the IEA, in March this year, oil inventories in developed countries were only 36.

Demand is experiencing a temporary setback.

Toril Bosoni, head of the IEA's oil market and industry department, said in an interview with Bloomberg TV that "demand prospects are still fragile.

After experiencing an unprecedented plunge in 2020, global oil consumption this year is expected to rebound by 5.

　　This will give the OPEC+ alliance of 23 countries led by Saudi Arabia and Russia a choice: either further resume the suspended oil production or continue to tighten the global market.

　　OPEC and its partners are restoring about 2 million barrels of daily production in three months.

　　According to the IEA report, OPEC’s 13 member states produced approximately 25 million barrels a day last month, while supply demand in the third quarter is expected to be 28.

　　Zhu Jiani is an excerpt from Bloomberg

　　The original text is as follows:

　　IEA Declares End to Global Oil Glut

　　The International Energy Agency said the supply glut created by the global pandemic has cleared, even as demand suffers a blow from a resurgence of the virus in India.

　　Surplus oil inventories in developed nations are now just a small fraction of the levels seen when demand collapsed last year, with output cuts by OPEC and its allies draining the excess, the IEA said on Wednesday.

　　"Bloated world oil inventories that built up during last year's Covid-19 demand shock have returned to more normal levels," the IEA said in its monthly report.

　　Oil markets have extended their recovery this year as fuel consumption roars back in China and the US, buoying international crude prices to about $69 a barrel in London.

　　In March, oil inventories in developed nations stood just 36.

　　Demand is suffering a temporary setback, with forecasts for Indian consumption in the second quarter cut by 630,000 barrels a day as a brutal wave of infections spreads across the country.
Estimates for global demand in 2021 were trimmed by 270,000 barrels a day, to 96.
4 million a day.
The Paris-based IEA advises most major economies.

　　“The outlook for demand remains fragile,” Toril Bosoni, head of the IEA's oil markets and industry division, said in a Bloomberg television interview.
Still, the agency is “expecting a very strong recovery in demand growth in the second half of the year .
"

　　Global consumption is on track for a rebound of 5.
4 million barrels a day, or 6%, this year after 2020's unprecedented slump.
The recovery will gather momentum in the second half, causing stockpiles to dwindle even further.

　　That will present the 23-nation OPEC+ alliance led by Saudi Arabia and Russia with a choice: restore some more of the production they've halted, or continue to tighten global markets.

　　The Organization of Petroleum Exporting Countries and its partners are in the process of reviving about 2 million barrels of daily output in three monthly installments.
When the increase is completed in July, the IEA's data indicates that demand for the cartel's crude will still be higher than its production.

　　OPEC's 13 members pumped about 25 million barrels a day last month, while demand for their supply in the third quarter is projected at 28.
1 million barrels, according to the IEA report.