OPEC raises global oil demand expectations, oil prices continue to rise

OPEC expects global crude oil demand growth to grow by 5.95 million barrels / day in 2021, compared with 5.89 million barrels / day previously. The group will increase OPEC crude oil demand expectations by 200000 barrels per day to 27.4 million barrels per day in 2021. The recovery of the oil market will absorb its additional supply, most of the growth in oil consumption in 2021 is expected to occur in the second third quarters.

Global oil inventories have been falling sharply since mid-2020 are expected to continue to decline in the coming months. On the supply side, oil production increased 200000 barrels / day in March to 2.54 million barrels / day driven by Iran. Second hand data show that Saudi Arabia crude oil production decreased by 33000 barrels / day to 8.09million barrels / day in March; Iran's crude oil production increased by 137000 barrels / day to 2.34 million barrels / day in March. Iran's output rose most last month, most countries were increasing production, except Saudi Arabia the UAE.

Iran's foreign ministry said Iran would begin uranium enrichment activities with a richness of 60 percent, which analysis believes is intended to respond to Israeli US sabotage of Iran's nuclear facilities. This has cast a shadow on the negotiations to restart the Iran nuclear agreement.

Data released by API in the early days showed that API crude oil inventory decreased by 3.688 million barrels by the week ended April 9, with a decrease of 2.68 million barrels in the previous value, an expected decrease of 2.54 million barrels. Gasoline inventory increased by 5.565 million barrels, while the previous value increased by 4.553 million barrels, with an expected increase of 1.05 million barrels. Refined oil inventory decreased by 3.06 million barrels, with a previous value increase of 2.81 million barrels, with an expected increase of 925000 barrels. Cushing's inventory increased 917000 barrels, with a previous value decrease of 84000 barrels.

OPEC's monthly report raised oil demand expectations, coupled with an increase in China's crude oil imports, oil prices continued to rise. JPX Middle East oil futures opened at y40410, up 460 yen, 1.14 percent, the settlement price.

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Source: China Energy Network