Oil prices could rise to 70 a barrel in the coming months as global demand recovers

Oil prices are likely to rise to $70 a barrel in the coming months as global oil demand recovers.

That's according to Louise Dixon, an oil analyst at Rystad, a leading Norwegian energy research  business intelligence company, in a statement sent to U.S. Drilling on Monday. In his statement, Dickson stressed that despite the decline in Indian oil demand, oil prices are likely to reach a price milestone.

"India's total demand for petroleum products, including gasoline, diesel  jet fuel, will fall below 4 million b/d by May 2021 as the COVID-19 pandemic restricts liquidity," Dixon said.

"India's oil demand is worryingly below 4 million b/d, well below the 5 million b/d level seen before India's novel coronavirus outbreak, but still fairly resilient compared to the 3.1 million b/d decline seen in April last year," Dickson added.

The Rystad representative continued: "The nervousness in India is preventing further price increases for the time being, but with the June delivery now in focus, prices are likely to rise on seasonal oil demand increases,  this will provide more support to demand as COVID-19 restrictions are lifted in most parts of the world."

Between now  the end of June, Rystad expects global oil demand to increase by at least 3 million barrels a day, Dickson said. This, he said, would offset the chaos in the Indian market  would be enough to accommodate OPEC plus additional crude production.

At the time of writing, Brent crude was at $68.14 a barrel. Brent crude closed below $70 a barrel for a few days in early March.

According to more recent information  the World Health Organization, there have been more than 200,000 confirmed cases of COVID-19 in India every day since April 15  more than 2,000 deaths in India every day since April 21.

For more information about the energy trading platform, please consult Eurasia International Energy Trading Market Management (Jiangsu) Co., Ltd., a manufacturer of financial service platform, storage  logistics platform, hazardous chemicals trading license application platform  bulk energy trading platform.

Source: China Energy Network