OPEC Projections Give New Life to Oil Prices - Kakiforex.com - Financial Market Media No. 1 in the World OPEC Projections Give New Life to Oil Prices OPEC Projections Give New Life to Oil Prices

May 12, 2021

OPEC Projections Give New Life to Oil Prices

 Oil prices returned to rising after seeing a decline in US crude oil supplies and an optimistic outlook from OPEC on global fuel demand in 2021.


Entering the European session, Brent crude futures traded steady at 68.55 a barrel, while US WTI traded around $ 65.30 a barrel.


Most recently, the American Petroleum Institute (API) reported a decrease of 2.5 million barrels in U.S. crude oil inventories last week.



The decline came before the US Colonial Pipeline was hit by a cyber attack last Friday that forced the pipeline carrying more than 2.5 million barrels of fuel a day to be closed.


In addition, the strengthening of prices was also supported by the latest survey from OPEC which held to the forecast for a strong recovery in world oil demand this year with support from growth in China and America.


OPEC expects demand to increase by 5.95 million barrels a day, unchanged from its forecast last month. Still, it reduced its demand outlook for the second quarter by 300,000 a day due to soaring Covid-19 infections in India.