by 
Outlook for global oil market for 2021
Oil prices reinforced in early trade on Tuesday, and while recovering from losses of the previous session, there is an optimism that OPEC+ will extend output cuts.
The hopes of an output cut extension counteract the fears of lower fuel demand. Also, despite rising COVID-19 cases and increased production from Libya, the outlook is positive.
- Bonny Light Crude Oil Vs. Brent Crude Oil in the Nigerian Market
- NNPC Partner FIRST E&P Begins Oil Production at OML 83
Nigeria’s oil benchmark Brent crude futures for January rose 16 cents, or 0.4%, to $43.98 a barrel by 0400 GMT+1. The U.S. West Texas Intermediate crude for December was up by 13 cents to $41.47 a barrel, up 35 cents, or 0.3%.
Global Oil Market
Both the Brent and WTI contracts gained at least 8% the previous week with the hopes of a COVID-19 vaccine. Prices were also projected on the expectations that the Organization of the Petroleum Exporting Countries (OPEC) and their allies will maintain lower output in 2021.
OPEC and its allies all known as OPEC+ had put up production cut of about 7.7 million barrels per day. They saw a compliance rate of 101% in October and had made plans to increase output by 2 million BPD from January.
An OPEC+ ministerial committee meeting is scheduled for Tuesday where it is expected that the group will reaffirm changes to production rations by the next meeting on Nov. 30 and Dec. 1.
Global oil demand is projected to grow by 6 mbpd in the first half of 2021.
Oil Market Challenges
With new lockdowns in the U.S and Europe, fuel demand recovery for the next months is looking weak. Libya’s oil production is back above 1.2 million BPD and this is just another challenge to OPEC+ cuts.
Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com
