The Strategist

Experts: Surplus oil in storages is almost exhausted

04/19/2021 - 03:48

Economists at Citigroup and the International Energy Agency (IEA) note that the surplus of oil in storages, created during the pandemic and the decline in fuel demand, is now all but exhausted. This is reported by Bloomberg.

Trafigura Images
Trafigura Images
"Commercial stocks in OECD countries have already returned to the average level of the past five years," said Citi commodity market analyst, “The excess stocks that remain are now mostly in China, which continues to build its permanent fuel reserve”.

According to IEA experts, as of the end of February, developed countries had less than 20% of the extra reserves they accumulated last year amid massive quarantine restrictions and a slowdown in economic activity that has sharply reduced demand for fuel.

Economists say current changes in the world oil market and rising demand for fuel from a recovering global economy have already pushed oil prices to $67 a barrel. While this is a welcome development for producers, it has raised concerns among some governments about the possibility of inflation.