Category: Nieuws

Commodity trade major Vitol reported a drop in its 2020 revenue to $140 billion from $225 billion a year earlier as the pandemic plunged its traded oil volumes sharply lower.

The company said it had traded 7.1 million bpd of crude oil and products last year, down from 8 million barrels daily a year earlier.

“It is just over 12 months since Covid-19 was declared a pandemic,” chief executive Russell Hardy said. “The virus shaped our business and our lives in 2020. The extraordinary market conditions in the initial stages of lockdown and sudden drop in demand resulted in huge logistical challenges and market opportunities.”

“With stocks building by over one billion barrels in the early part of the year, the industry had to manage unprecedented circumstances, restructuring supply chains to handle the crude oil and products that neither producers nor consumers could contain. Whilst much demand has returned and the outlook is positive, the recovery has been slower than many anticipated and near-term uncertainties remain.”

Despite the lingering uncertainties, Hardy also said Vitol expected oil demand recovery across most sectors, with the notable exception of aviation. For that, Vitol’s chief executive said, demand recovery would take a while longer.

Vitol reportedly made a profit of $3 billion last year, according to sources cited by Bloomberg, much of it during the worst of the pandemic—the second quarter of 2020.

Over the longer term, Vitol said it expected a shift in energy demand from liquid hydrocarbons to electricity, although it noted that over the medium-term, demand for fuels such as liquefied natural gas and liquefied petroleum gas would grow as economies shift from coal to liquid hydrocarbons.

“At present, and until large scale battery capacity has grown significantly, there will be a need for gas fired generation to help manage the intermittency associated with renewable solar and wind generation,” Russell Hardy said.

Oilprice, by Irina Slav, April 13, 2021

The second quarter starts in earnest, after the reflation and reopening themes — which were once the only sought-after trades — saw day traders and pure momentum chasers take oil higher. Brent oil went all the way from $55 per barrel to $70 a barrel.

Of course, the last $5 a barrel squeeze was when Saudi Arabia convinced OPEC+ to hold off on raising production by 500,000 barrels per day unexpectedly in March — including keeping their voluntary 1 million barrels per day out of the market for two more months, causing the knee-jerk spike higher.

The majority of the move higher in oil prices in the first quarter was on the back of every sell-side house coming in guns blazing, talking about the reflation trade with cyclicals (value) names as the best way to play that view. This got so extended that every day trader watched every tick higher in U.S. bond yields and chased “value” sectors higher, without questioning the market’s own fundamentals.

It was a disaster waiting to happen.

Lo and behold, Brent oil is back down to $62 a barrel. and the “value” trade is getting harshly sold down now, just as everyone has gone all-in. So, what is going on?

One of the biggest problems with the oil market is that it has always had too much oil supply. The market has never been short of oil, it is not a “tight” market, as people like to call it. There is a window of opportunity during select months when the market can tighten up as demand picks up. Of course, the one swing factor has been OPEC, mostly Saudi Arabia, that has been keeping a substantial number of barrels per day of oil out of the market since last April. Keeping Oil off the market may take the market higher in the short term, but it still faces the inevitable problem of more supply coming at some point. This is where we are right now.

During the first quarter, more happened than the harsh winter Texas freeze. OPEC+ also was deliberately keeping oil out of the market — buying time before the world reopens. These two caused prices to move aggressively higher. OPEC’s agenda is very clear: They need higher prices. It is that simple. With no Donald Trump around to strong arm them into raising supply to help the U.S. consumer, they are now promoting their own mandate.

As prices nudge higher, it is very hard to convince members to hold off on oil production cuts. At their latest Joint Ministerial Monitoring Committee meeting, the group has now announced to add 350,000 barrels per day of oil in May and June, and 400,000 barrels per day in July. Saudi Arabia has agreed to add back its voluntary cut of 1 million barrels per day in July. This is all preemptive of the world reopening and a sensible bet that if things go back to normal after the world is vaccinated, the demand pick up should in theory match supply. But of course, Oil is all about timing. For now, we are in a weak shoulder period where demand is soft between seasons, and supply is picking up.

Over the fourth quarter and into the first quarter, China had been buying oil aggressively, which aided the physical markets to get tighter. They are now holding off, or buying Iranian oil, the floating barrels, which takes pressure out of the traditional markets.

Will China return in the second quarter? That remains to be seen. The nation had been buying and restocking when Brent was $38 a barrel. There is also talk of the U.S. and Iran coming to an agreement, which could potentially remove sanctions on Iran and releasing even more oil onto the market. This is all adding to OPEC’s worries. 

The only true end game for oil that could see sustainable prices longer term would be to let the market reset, release supply freely and let the market find its true equilibrium. Of course, that notion is way too scary for OPEC members, as they would not be able to bear the near-term cost. However, once that is done, all the weak players will be flushed out and only the strongest will survive. Then any pick-up in demand can see the big players benefit for a much longer period. It seems OPEC+ faces the same dilemma as the Fed: They have no choice but to keep supporting an already weak market. OPEC+ is taking a bet that perhaps the world gets vaccinated, travel resumes causing a surge in demand to soak up the supply. As Canada, Europe and other nations still remain in lockdowns, fighting over which vaccine to give to their population, the jury is out on this one for now it seems.

Real Money, by Maleeha Bengali, April 13, 2021

OPEC and partners are betting on a significant boost in oil demand over the coming months as member states get ready to ramp up oil production.  OPEC, Russia, and their allies are planning to increase oil production by 2.1 million bpd by as early as July this year, suggesting the confidence they have in a market rebound. The organization’s output cuts of 7 million will be eased significantly each month between now and July.

Saudi Arabia is also expected to ease its voluntary output cuts to increase production by 1 million bpd by July. 

The announcement to ease restrictions comes unexpectedly as the oil industry is once again suffering from increased Covid-19 restrictions as Europe and parts of Latin America go into a third wave of the pandemic. 

Oil prices have dropped to the lowest in almost two weeks as European lockdown measures continue to be extended, leaving the market unsure of upcoming demand trends. Futures in New York fell 4.6 percent on Monday, from $64.86 a barrel on April 1 to $62.15, which decreased oil prices to below the U.S. crude’s 50-day moving average.

OPEC will be hoping that prices remain generally high as production increases, relying on the international market to soak up the higher crude production by the summer months. However, it will be battling with restrictions on travel, closed businesses, and the new working-from-home norm. 

However, optimism around the vaccine rollout continues, as the U.K. has given the first vaccine to almost half of the population, and the U.S. to over 30 percent of the population. While vaccination programs in the rest of Europe and North America are moving at a slower rate, there is still hope that many countries will catch up by late 2021.

Vitol, the world’s biggest independent oil trader, stated this week that it expects oil demand to increase over the next decade but warns jet fuel recovery will be slower. While certain oil sectors will remain stagnant, others are expected to increase, including light ends used in manufacturing. 

Platts Analytics is also optimistic about the 2021 rebound, anticipating an oil demand growth of 5.9 million bpd this year, in comparison to the 9 million bpd decrease experienced in 2020. The firm expects demand to climb steadily before plateauing at an estimated 113.5 million bpd in the late 2030s.

The increase in demand will come predominantly from Asia, as China and India’s energy needs are steadily increasing as already developed markets, such as Europe and North America, are expected to stagnate.  

OPEC+ is looking increasingly toward India and its oil refiners, as Saudi Arabia hopes to forge strategic relations with one of the fastest-growing downstream markets in the world. At present, the Arab Gulf States account for around 20 percent of India’s total import bill, which is dominated by oil and gas. 

While Covid-19 restrictions continue to hamper oil demand, optimism around the vaccine rollout as well as increased demand from emerging markets suggests OPEC’s plan to ramp up production will be met with enthusiasm. 

Oilprice, by Felicity Bradstock, April 13, 2021

Oil prices were little changed on Thursday as a falling dollar and rising stock markets offset earlier declines caused by a big increase in U.S. gasoline stockpiles and subdued demand compared with pre-pandemic levels.

Brent futures rose 4 cents, or 0.1%, to settle at $63.20 a barrel, while U.S. West Texas Intermediate (WTI) crude ended 17 cents, or 0.3%, lower at $59.60.

“Crude prices are struggling for direction as short-term COVID pressures are countered by a much weaker U.S. dollar,” said Edward Moya, senior market analyst at OANDA in New York.

The U.S. dollar fell to a two-week low against a basket of currencies, tracking Treasury yields lower, after data showed a surprise rise in U.S. weekly jobless claims.

A weaker dollar makes oil cheaper for holders of other currencies, which usually helps boost crude prices.

The S&P 500, meanwhile, hit a record high and the Nasdaq was at a seven-week peak, helped by gains in tech-related stocks, a day after the Federal Reserve reiterated its pledge to remain ultra-dovish until the economic recovery is more secure.

U.S. gasoline inventories rose sharply by 4 million barrels to a little more than 230 million barrels as refiners ramped up output before the summer driving season, the U.S. Department of Energy said on Wednesday. [EIA/S]

“A huge build in road fuel stocks is not what the market was expecting and concerns over the speed of the oil demand recovery resurfaced, leaving traders wondering how stable road fuel usage actually is,” said Rystad Energy analyst Bjornar Tonhaugen.

Russia said the fallout from the COVID-19 pandemic on the global consumption of oil may last until 2023-2024, according to a draft government document seen by Reuters.

While oil demand remains weakened by the impact of the coronavirus, crude production looks set to rise.

Last week, the Organization of the Producing Countries (OPEC) and its allies, including Russia, a group known as OPEC+, agreed to bring back about 2 million barrels per day (bpd) of production over the next three months.

Iran and the United States held talks with other powers on reviving a nuclear deal that almost stopped Iranian oil from coming to market, reviving tentative hopes Tehran might see some sanctions lifted and add to global supplies.

Data intelligence firm Kpler said the U.S.-Iran negotiations provide potential for 2 million bpd in additional oil supply if a deal is struck.

Russian oil output increased from average March levels in the first few days of April, traders said.

In the United States, energy research firm East Daley lifted its rig and production outlook for the Permian Basin in Texas and New Mexico following a 22% rally in WTI prices during the first quarter. The firm said that price rise set the stage for years of additional oil and natural gas output from the shale formation.

Reuters, by Scott DiSavino, April 13, 2021

Oil refineries plan to ship around 280,000 tonnes of oil products in April.

Apollo Global Management Inc. is leading a group of investors aiming to buy a roughly $10 billion stake in Saudi Aramco’s oil pipelines, people familiar with the matter said.

The buyout firm’s consortium will include U.S. and Chinese investors and has been shortlisted to make a final offer, the people said, asking not to be identified as the matter is private. Aramco, Saudi Arabia’s state energy company, has narrowed the pool of bidders and Canada’s Brookfield Asset Management Inc. and BlackRock Inc. are no longer involved, the people said.

While the Apollo consortium is currently seen as a leading contender, another bidder could still emerge as the winner, the people said.

Aramco, the world’s biggest oil company, may choose a winner in the coming weeks, though it could decide not to sell the stake, according to the people.

Representatives for Apollo, Aramco, BlackRock and Brookfield declined to comment.

Opening Up

If an agreement is reached, it could rank among the largest infrastructure deals this year and be one of Apollo’s biggest ever, data compiled by Bloomberg show.

The potential sale is part of Saudi Arabia’s plan to further open up to foreign investors and use the money to diversify the economy. Asset disposals also go some way to helping the energy giant maintain payouts to shareholders as well as investments on oil fields and refinery projects. The company paid a $75 billion dividend last year, the highest of any listed company, almost all of which went to the state.

Global infrastructure funds are flush with record amounts of capital and seeking assets with predictable returns. Last year, Abu Dhabi’s state energy firm sold a $10.1 billion stake in natural-gas pipelines to a group of six investors including GIP and Brookfield.

JPMorgan Chase & Co. and Moelis & Co., the Wall Street investment bank that was also involved in the Abu Dhabi deal, are among Aramco’s advisers.

Bloomberg, by Dinesh Nair , April 9, 2021

The President of Mexico, Andrés Manuel López Obrador (“AMLO”), sent a new bill to Congress intended to amend the Federal Hydrocarbons Law (the “Hydrocarbons Bill”). This is AMLO’s latest attempt to upend the Mexican energy sector and to restore the dominance of PEMEX, the national oil company.

Consistent with his recent announcements, AMLO claims that the privatization of the Mexican energy market has caused grave harm to Mexico’s national energy security.

The Hydrocarbon Bill’s stated purpose is to grant a greater role to state owned entities in midstream and downstream activities rather than “leave those activities in the hands of the private sector in light of the imminent risks to national security.” The Hydrocarbons Bill indicates that the world is entering an energy transition that will affect Mexico’s ability to guarantee its energy security and financial stability; and that a shortage of hydrocarbons supply poses serious risks to the country.

The Hydrocarbons Bill uses these reasons to justify granting unfettered authority to the Mexican government to suspend previously-granted permits for the import, export, storage, processing and commercialization of hydrocarbons, petroleum resources and petrochemicals.

In practical terms, the Hydrocarbons Bill, if passed, will set forth the following new rules with respect to such permits:

• Permit holders for distribution and commercialization will be required to comply with a minimum fuel storage policy;
• If energy regulators fail to respond to a permit application within 90 days, the permit will be considered to have been denied;
• The Energy Ministry (“SENER”) and the Comisión Reguladora de Energía (“CRE”) will have enhanced authority to suspend (temporarily or permanently) operating permits. Permits can be suspended based for vague and broad reasons such as “national and energy security” or the “security of the national economy.”
• Once a permit is suspended, SENER and CRE can occupy the facility; only state-owned entities can continue operating the occupied facilities; and
• Failure to comply with hydrocarbons’ quality, quantity and measurement requirements, as well as modifications to technical equipment shall be deemed as new immediate grounds for permit revocation.

This Hydrocarbons Bill is the latest example of AMLO’s nationalistic ambitions to undo Mexico’s 2013 privatization of the energy market.

If the Hydrocarbons Bill is passed, permit-holders will face considerable uncertainty due to the Mexican authorities’ new power to suspend their permits based on undefined and politically motivated grounds.

Similar to the recent reform to the power sector,¹ the Hydrocarbons Bill is expected to move swiftly in the House of Representatives and the Senate, where AMLO’s political party, “Morena”, holds the majority.

The proposed legislation comes in advance of Mexico’s midterm federal elections in June 2021, which will test AMLO and his party’s political clout.

Due to its impact on existing investments in Mexico, the Hydrocarbons Bill could violate rights afforded by Mexico to foreign investors under international investment treaties and free trade agreements.

Mexico has signed investment treaties and trade agreements with approximately 45 countries. These treaties and agreements protect foreign investors from, among other things, discriminatory, arbitrary, and unfair and inequitable treatment by the Mexican Government, as well as from direct and indirect expropriation of their investments.

Like other countries that amended their energy regulatory framework, Mexico could see a number of investment treaty arbitrations launched by foreign investors. As part of a comprehensive defense strategy, investors considering filing local actions, like amparos, should asses, in parallel, their remedies under these treaties.

By JD Supra, April 2, 2021

The state oil company of Kuwait plans to borrow as much as $20 billion over the next five years to make up for an expected shortfall in funding, a person familiar with the matter said.

Kuwait Petroleum Corp. will need the money to maintain the petrostate’s crude-production levels, said the person, who asked not to be named because the information is private.

The borrowing plan underscores how badly Persian Gulf countries were impacted by the drop in crude prices last year as the coronavirus pandemic spread and energy demand plunged.

The company remits almost everything it generates from crude sales to the OPEC member’s government. It then gets reimbursed in installments to fund capital expenditure, mainly for upstream operations and investments in oil fields. The firm may face a deficit of 6 billion dinars ($19.9 billion) over five years, though it hopes to minimize the gap by becoming more efficient, the person said.

KPC plans to cover the shortfall by issuing debt, including on international markets. The situation will be reviewed every six months to assess the company’s needs and borrowing costs, the person said.

Pandemic Hit

Kuwait’s financial position — like that of almost all major oil producers — took a hit last year when the virus grounded planes and shut down businesses across the world. The government faced a cashflow crisis and it instructed KPC to transfer more than 7.5 billion dinars in dividends to the Treasury, but which the Supreme Petroleum Council had previously said could be retained.

KPC has since reached a preliminary agreement to repay the sum over 15 years. That helps but won’t solve the company’s problem, the person said.

The firm’s media office couldn’t be reached for comment.

Wealth Fund

Oil accounts for 90% of Kuwait’s revenue. The nation pumps around 2.4 million barrels of crude a day, making it the fourth-biggest member of the Organization of Petroleum Exporting Countries.

Kuwait is trying to cut spending to contain its economic slump. KPC has slashed capital-expenditure projections for the next five years by more than 30%. The company has hired a consultant to help merge eight subsidiaries into four to streamline operations. That’s expected to be completed by the end of 2022, the person said.

Last month, the government sought permission from parliament to withdraw money from the sovereign wealth fund for the first time since the aftermath of the Gulf War in 1990.

Bloomberg, by Fiona MacDonald , April 3, 2021

The sun never sets for Pravin Jamkhandi, a 49 year old farmer. He is the only one of the four brothers to continue farming and works on his 6.2-hectare land. He grows hybrid cucumber, often referred to as ‘Chinese kheera’ by city vendors and is a keen learner of new agricultural practices.

He realises that even when India is the largest segment of the Indian populace are farmers, they face endless occupational challenges everyday, often owing to flood, drought, productivity and irrigation. Irrespective of the rainfall received during a particular season or the presence of water bodies around, the crisis looms large on these agriculturists for whom water is nothing less than an elixir. And so, he puts his trust in innovative agro pumps that are designed to provide superior performance and reliability are ideal for all agricultural solutions, like the ones that Crompton makes.

Crompton’s extensive range of pumps expands through categories like household, Agriculture specialty, and solar. Over the years, its agricultural pumps specifically have become a megahit because they are sturdy and provide an unfailing and steadfast performance. Here are a few ways how Crompton has been silently allying with the farmers’ toil for decades:
Extensive range of pumps suitable for all your needs and applications
Agriculture pumps are used for irrigation of land by sprinkler, flood or micro-irrigation. Water is pulled out by pumps from reservoirs with the help of open well or monoblock pumps or with the help of borewell pumps from borewells that are up to 60 to 1500 feet deep!

An agro pump helps farmers transfer water from one source to another with ease. Whether the source is underground or situated on the surface, these pumps are powerful enough to draw water from just about any depth. For your farming and agricultural needs, these pumps use high pressure to transfer the water to your desired location. They help make the distribution of water more convenient with every pull. But before you buy a pump, you need to understand its specifications. Each pump has a different power range, stage, head range, discharge range, pipe size and supply phase. The higher the power, the greater will be the discharge from the pump.
Keeping this in mind, we have brought you information about the various types of agricultural pumps and their features.

Borewell Submersible Pump

Farmers are well aware that unpredictable rainfall leads to an uneven supply of water. To ensure uninterrupted water supply throughout the year, you can opt for a borewell submersible pump. This pump is entirely submerged in water. Lower HP variants are also used for supplying water to residential and industrial units. Borewell pumps come with many exciting features like better hydraulic and electrical design along with high-grade electrical stamping which make the pump highly efficient. The specially designed thrust bearing ensures reliability and its simple construction makes maintenance easy. It can also function effectively in a wide voltage band, protecting it from voltage fluctuations.

Open Well Submersible Pump

Used to extract water from reservoirs and transfer it to the storage in farms or directly to the farmland, this pump is also submerged in water. It can be used in irrigation, transferring water from canals, wells to farms etc. These pumps come under wide voltage range and with CED coated parts. Their ability to function effectively in a wide voltage range without damaging the pump makes them a safer and more durable option. The parts that are CED coated make the pump rust and stuck-free, giving it a longer life. If you are looking to buy open well pumps, you must consider factors like reservoir, storage tank size, pipe diameter, and material used in pumps before buying them. Also, there are two types – horizontal and vertical. It’s always better to talk to an expert before making a purchase.

Centrifugal Monoblock Pumps

When there is a need for vast quantities of fluids to be transferred from one location to the other, these pumps come in handy. They ensure that the flow rates are high. Monoblock Pumps find use in agriculture, industry, wastewater plants, mining, power generation plants and many more industries. Centrifugal pumps offer wide voltage bands like most agricultural pumps do but what sets it apart is the monoset construction. The monoset construction and high-quality mechanical seal prevents any leakage and prevent contaminants out.
Stress-free Solutions for Regular Water Supply
Crompton agriculture pumps ensure that you don’t miss out on your regular water supply, whether it is your overhead water tank, industrial applications or farming needs. They come with advanced technology and features like:

• High Grade Electrical Stampings that ensure reduced power losses & lower the operating current of the pump.
• Wide Voltage Application is designed to withstand wide voltage fluctuations from 250V-440V & provides consistent performance.
• Lower Operating Current with robust electrical design leading to lower electricity bill.
• High Thrust Capacity ensured by specially designed thrust bearing leading to highest reliability.
• Long term maintenance with easily replaceable wear & tear parts, low maintenance cost.

Water pumps offer benefits to not just farmers but also crops and ecosystems on the whole. They are an essential to the modern irrigation system and should be invested in if not done already. If you’re anyway connected to the world of agriculture, check out the extensive range of Crompton Agro Pumps today.
Disclaimer: This article has been produced on behalf of Crompton by Times Internet’s Spotlight team.

By Times Of India, April 2, 2021

Abu Dhabi started trading futures contracts for Murban crude, its biggest oil grade, in a bid to create a benchmark for the energy market.

The aim is “to make sure that Murban is a globally freely traded commodity and allows everybody around the world to use it either for pricing or hedging their risk,” Khaled Salmeen, executive director of supply and trading at government-run Abu Dhabi National Oil Co., said in an interview with Bloomberg Television. “It provides an additional tool that the market has been looking for.”

The start of Murban trading on an Abu Dhabi exchange on Monday marked the first time a Persian Gulf OPEC member has allowed its oil to be freely sold and shipped anywhere in the world. Atlanta-based Intercontinental Exchange Inc. is operating the platform known as ICE Futures Abu Dhabi.

Establishing a benchmark isn’t immediate as traders want to see a sufficient volume of deals over time that lead to prices investors deem fair. Creating a forward curve, or bids and asks for crude in future months, will also be a key test for the new Murban exchange.

On its first trading day, volume in Murban for June, the first month for which cargoes will be available, and for July both exceeded 2,200 lots, with more than 1,100 August contracts changing hands and several hundred for September. Each lot represents 1,000 barrels. The contract for June delivery traded at $63.78 a barrel as of 2:50 p.m. in Abu Dhabi.

Murban’s first trading day has “been a real success so far,” Stuart Williams, president of ICE Futures Europe, said in a Bloomberg Television interview. “We have greater aspirations for this contract,” Williams said of the ambition to establish Murban as a regional benchmark. Once trading volumes and liquidity are established, ICE and Adnoc will seek to advance talks with other national oil companies in the region about adopting Murban futures as a pricing reference for their sales.

The region’s main producers, including Saudi Arabia, Iraq and the United Arab Emirates, of which Abu Dhabi is the capital, tend to stop buyers from reselling their oil. They also use benchmarks from outside the Middle East to price much of their crude.

In attempting to make its mark, Murban faces competition for regional benchmark status. S&P Global Platts publishes widely used price assessments for Dubai oil and the Dubai Mercantile Exchange trades futures for Omani crude. Both act as benchmarks for Middle Eastern shipments to Asia.

What’s more, oil traders dislike change, especially when they believe markets already do a good job matching supply and demand. Platts backed away from plans to revamp its Dated Brent contract after comments from traders earlier this year.

Adnoc can produce about 2 million barrels of Murban crude a day and has pledged to guarantee at least 1 million barrels of daily exports to support trading on the exchange.

Murban’s available volumes mean supply will be “enough to establish this benchmark, and then you will see other crude in this region being benchmarked against it,” Patrick Pouyanne, chief executive officer of French oil major Total SE, said in an interview in Abu Dhabi Monday.

Total is a partner with Adnoc in Abu Dhabi’s onshore fields where Murban crude is produced and is a partner in the new exchange. Brent’s declining output means Murban is “serious competition” and the Middle Eastern grade could one day become as famous as its European counterpart, Pouyanne said.

Adnoc CEO Sultan Al Jaber said at a ceremony for the start of trading in Abu Dhabi that the company now sells Murban to more than 60 customers in 30 countries, a leap from its “humble” beginnings in the late 1950s when just 4,000 barrels were pumped daily from one well. Trading Murban will help Abu Dhabi and the UAE get more value out of its barrels, he said.

The UAE is the third-largest producer in the Organization of Petroleum Exporting Counties, which cut supplies last year as the pandemic crushed energy demand.

OPEC+, a broader group including countries like Russia, meets this week to discuss whether to further ease the production cuts that began last May. Those supply curbs and the rollout of vaccines have caused the established global benchmark, Brent crude, to surge roughly 65% since the start of November to about $63.50 a barrel. Still, the rally has faded this month amid a new wave of virus cases, which may push some members of the producer group to argue that the cartel can’t raise output just yet.

Price levels in the range of $60 a barrel are “a sustainable average,” Salmeen said.

Last week’s closing of the Suez Canal after the Ever Given container ship ran aground won’t cause major issues for oil markets, he said. Markets are well supplied and buyers can draw from high inventories to avoid any shortages, he said.

Bloomberg, by Anthony Di Paola, April 2, 2021