Oil prices might rise during the second half of this year in light of the depletion of the oil reserves that were accumulated in storage facilities around the world during the pandemic, the International Energy Agency expected.
According to Bloomberg the surplus reserves of oil in July 2020 were almost five times higher, amounting to 249 million barrels, indicating that stocks decreased in recent months further, amid increased demand.
Bloomberg predicted oil prices to rise to $74 a barrel, against the backdrop of the expected reduction in oil reserves in the second half of 2021.
Oil reserves in the world’s advanced economies are 57 million barrels higher than the average data for this indicator for the years 2015-2019.
Bloomberg said that the largest oil reserves are currently stored in China, while US hydrocarbon reserves have practically returned to the level observed before the pandemic, reaching 1.28 billion barrels in February.
The agency indicated that oil stocks on the east coast of the United States recorded their lowest level in 30 years last week.
During the past two weeks, oil reserves stored in tankers decreased by 27% to 50.7 million barrels.
The cost of June Brent crude futures on the London Stock Exchange rose on Friday to $67.08 a barrel.
Oil exporters had decided, against expectations, at a meeting on April 1, to increase oil production as of next May.
OPEC+ countries will increase their oil production in May by 350 thousand barrels per day, in June by another 350 thousand barrels per day, and in July by another 450 thousand barrels per day. The decision was taken immediately for a period of three months.
It is worth noting that the OPEC + countries, which represent more than 40% of global oil production, have met every month since the beginning of 2021, to determine levels of production in the short term. This approach gives members more flexibility in the face of recovering fragile demand.