BAKU, Azerbaijan, Nov.10
By Leman Zeynalova - Trend:
World crude oil consumption has exceeded crude oil production for five consecutive quarters going back to the third quarter of 2020, Trend reports with reference to the US Energy Information Administration.
“During this period, total petroleum stocks among countries in the Organization for Economic Cooperation and Development (OECD) fell by 424 million barrels—from 9 percent above the five-year average in June 2020 to 7 percent below the five-year average at the end of September 2021. We forecast global crude oil demand will exceed global supply through the end of the year, contribute to some additional stocks draws, and keep the Brent crude oil price above $80/b through December. However, we forecast that global oil stocks will begin building in 2022, driven by rising production from OPEC+ and the United States, along with slowing growth in global oil demand. We expect this shift will put downward pressure on the Brent price, which averages $72/b for 2022 in our forecast,” reads the EIA report.
The price for crude oils with high levels of sulfur declined relative to those with lower levels, as a result of both rising crude oil exports from OPEC and high natural gas prices that may be affecting the costs of certain refinery operations, among other factors, said the energy administration.
“OPEC has been increasing production and exports during the second half of 2021. Crude oil production from many OPEC countries tend be a sour grade. The increase in OPEC exports has added to global supplies of sour crude oils. Additionally, sour crude oils must first be treated with hydrogen to meet low-sulfur fuel specifications and to avoid damage to refinery units,” reads the report.
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