Many Factors Weighing on Oil Demand Outlook this Month

In this week’s installment of what to watch this week at Rigzone, Matthew V. Veazey highlights recent developments that will be putting pressure on oil demand outlook.

Most significantly, the COVID-19 case count continues to rise in three of the largest economies – India, Brazil, and Japan. Meanwhile, refineries begin to build inventories ahead of summer driving season beginning next month (and this year’s driving season is expected to set records).

Additionally, Validere’s Mark Le Dain comments that supply chains are extremely strained right now, and generally oil is a big factor in reducing this friction. For example, Peleton has begun flying their bikes to consumers to help alleviate their major delivery backlog.

All these factors, in combination with the recent decision by OPEC+ to continue with their planned increase in crude output this month and next, will make for an interesting few weeks ahead.

Check out the full story here.

Tamara Teofanovic