Crude oil prices are under some pressure with Brent hovering around USD 72 per barrel on profit-taking after having climbed to multi-year highs when OPEC+ producers clashed over plans to raise supply to meet rising global demand. Yaw Yan Chong, Director of Oil Research in Asia at Refinitiv shared his forecast in an interview with CNBC-TV18.
Crude oil prices are under some pressure with Brent hovering around USD 72 per barrel on profit-taking after having climbed to multi-year highs when OPEC+ producers clashed over plans to raise supply to meet rising global demand.
Yaw Yan Chong, Director of Oil Research in Asia at Refinitiv shared his forecast in an interview with CNBC-TV18.
“The expectation, the most likely scenario is that Organization of the Petroleum Exporting Countries (OPEC) will come to some kind of compromise with the UAE and therefore they will extend that agreement and that agreement would be to add supply to the system,” he said.
OPEC could increase production by 400,000 to 600,000 barrels per day from August 1.
“So the likely scenario for the market is it will stay in balance at around USD 70-75 per barrel,” he added.
On the demand perspective, he mentioned, “We would expect to see demand coming back increasingly as time goes by, as more vaccinations are rolled out. We should start seeing some normal levels of demand.”
Indian market is on the road to recovery. It is not yet at pre-pandemic levels but getting there.
“We believe that the June refinery rates will be higher than the May average and will continue to improve as we go towards July. Domestic demand is also recovering. If no fresh wave of infections reoccurs then you should be on the way to recovery within the next 2-3 months,” he stated.
Source: CNBC TV18