Global oil market may be in short supply
Disagreements within OPEC+ could lead to oil scarcity. If the countries of the alliance maintain production at July level in August, the market would shrink significantly, the International Energy Agency says. The present volatility is not in the interests of either producers or consumers. Analysts have observed that the conflict between Riyadh and Abu Dhabi arose at a very bad time. The excess oil accumulated during the coronacrisis has been used up, and the reserves are below average. If the OPEC+ countries make a deal, then their expected increase in production of 400,000 barrels per day (bpd) will be significantly less than what consumers need. The IEA expects global oil demand to grow by more than five million bpd this year, and by three in the next year, but new outbreaks of coronavirus in some countries remain a key risk to this forecast.
Translation by Assem Zhanmukhanova
Editing by Saule Mukhamejanova