According to the data provided by the International Energy Agency, in 2021, the world may face oil supply surplus. It may reach 0.6 billion barrels compared to 2019, IEA emphasizes.
The organization supposes that next year, the crude oil market will recover much slower than expected. Earlier, IEA downwardly revised its forecast of oil demand in 2021 by 170,000 barrels a day to 5.7 million barrels. IEA foresees that global consumption of hydrocarbons will drop by 8.8 million barrels a day. These predictions are much worse than those made in April when analysts expected a decline of just 50,000 barrels a day.
Specialists at the agency believe that the world may see oil glut in the upcoming year. They hope that China will somehow stabilize the situation due to its high consumption of oil. However, if China’s demand for crude oil remains low, the global oil market may have to cope with serious problems. The market is likely to stabilize no earlier than July 2021 amid a shortage of oil reserves.
Earlier, Vladimir Putin, President of Russia, said that interest in oil was slumping. He thinks that in the next 5 years, demand for oil will inch up by 1% a year. After that period, oil demand will slide by 0.1%.