Weekly Oil Report: Demand falling amid more lockdowns

[vc_row][vc_column][vc_column_text]Oil price followed almost a stable trend, fluctuating about ±3 USD within the last week and it is predicted to observe the same stream in the current week. Based on reports, Iran reached its highest level of oil production in the last 15 months, and now Iran with the capacity of producing and exporting 2.5 million barrels per day can be known as one of the main producers of OPEC again. On the other hand, as the vaccination process is not happening homogeneously all over the world, a new wave of lockdowns is imposed on various cities and countries. Although vaccination was a green signal of returning to normal life, its inequity of distribution led to fear of the fall of the economy as well as oil prices in the world. Meanwhile, in the annual meeting of Bloomberg NEF, the general manager of Pioneer Natural Resources emphasized that the oil industry will face another “Price War” in the case of the current stability of oil price and shale oil production within the next year up to 1 million barrel per day. In March 2020, oil demands decreased due to the outbreak of COVID-19, and the production of crude oil reached up to 13 million barrels per day in the US before this outbreak. These two factors made the OPEC+ coalition not follow their commitments regarding the quantity of oil production. In the meantime, by the official return of the US to the Paris Climate Pact, Wood Mackenzie company announced that if this pact leads to more renewable energies, the Brent Crude Oil will drop to 10 USD per barrel up to 2050. In the first three months of 2021, thirteen oil companies in the USA were bankrupted which can be considered a record since 2016. Also, the trend of economic recovery and relative growth of NON FARM PAYROLL (NFP) in the United States and the increase in employment, which amounted to 144,120 new jobs in April 2021, as well as news from China, which indicates China's high economic growth in 2021, indicates the continuation of the current trend and the stability of prices in the current range, in spite of all the negative aspects. This article was prepared by Mahnaz GolMohammadian   [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_raw_js]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[/vc_raw_js][/vc_column][/vc_row]