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Investing.com – After the strong gains on Thursday night, prices fell marginally today, but are heading towards posting weekly gains before Friday’s close.
Meanwhile, two sources from the Organization of the Petroleum Exporting Countries (OPEC) have said that not much will change in its highly anticipated key report its view that global oil demand will continue to grow longer than many analysts expect. according to Reuters.
Prices now
It fell during trading today, Friday, by more than 1%, but is starting to record weekly increases, with the weakness of the American one, and the arrival of American oil exports at record levels.
Crude oil futures for December delivery fell 0.7% to $ 94.80 a barrel.
US crude oil futures for December delivery also fell 0.9% to $ 88.20 a barrel, but are even higher by more than 5% this week.
Oil prices are also heading higher in October after posting quarterly losses due to growing concerns about an economic slowdown.
OPEC’s expectations … Contrary to analysts’ expectations
Two sources from the Organization of Petroleum Exporting Countries said in its highly anticipated key report that it won’t change much in its view that global oil demand will continue to grow longer than many analysts expect, despite the growing role of renewable energy. and electricity machines.
The organization will update its long-term oil demand forecast in its World Oil Outlook for 2022, scheduled for October 31. The 2021 version included expectations of stabilizing oil demand after 2035.
Growth in oil demand for another decade or more will be an impetus for producers and OPEC, whose 13 members depend on oil revenues, and will highlight the need for continued investment in new oil supplies. Consumers and governments urging efforts to reduce oil use to combat climate change will be less happy.
And OPEC adopted a change in 2020, when demand was hit by the pandemic, and said its pace would eventually slow down, after years of expecting demand to rise non-stop. The new update is likely to keep OPEC among the most optimistic about oil demand.
lower expectations
Last year, OPEC forecast oil demand to reach 108.2 million barrels per day in 2045, up from 90.6 million barrels per day in 2020.
For several years, the organization has been slashing its forecasts for 2045 due to changes in consumer behavior due to the pandemic and competition from electric cars.
Conversely, OPEC is expected to increase its demand forecast for 2045 this year, according to the two sources.
But two former OPEC officials pointed to the long-term trends that will affect demand.
“Oil-producing countries are also interested in switching to electricity because of pollution. In Kuwait, people are starting to buy electric cars,” said Kuwaiti Hassan Qabazard, head of OPEC’s research department since 2006. to 2013.
Qabazard said last year that demand could peak within a decade and possibly beyond, a view that hasn’t changed since.
Talks with the Saudi Minister of Energy
Saudi Energy Minister Prince Abdulaziz bin Salman held talks with two European ministers on supporting and increasing the stability of the global oil market.
And the Saudi news agency said, today, Friday, that Prince Abdulaziz discussed, in two separate meetings by videoconference, the French minister for energy transition, Agnes Panier-Runacher, and the Greek energy minister, Costas. Skrickas, of continuing close communication and strengthening cooperation to address emerging risks and challenges.
The agency reported that ministers stressed in the two meetings the need to “guarantee the security and reliability of energy supplies to global markets”, noting that the Kingdom “remains a reliable partner in the supply of crude oil” to France and Greece.
More flexible limit
According to Bloomberg, investors are measuring the impact of impending EU sanctions on Russia at a time when the United States and the European Union have proposed to cap Russian oil prices, but officials Americans have been forced to relax their plan to impose a price cap before it can be implemented in the current quarter, according to Bloomberg, statements from people familiar with the subject.
Instead of stifling the Kremlin’s sources of oil revenue by imposing a tight cap, the US and the EU will settle for a looser limit and look at it at a higher price than previously anticipated, the US agency suggested.
The report indicated that only the Group of Seven and Australia will commit to implementing the price ceiling for Russian crude.
While the sources cited by the agency say that India and China are clear that they will not participate in the imposition of a ceiling on the prices of oil imported from Russia.
