The spread of the Indian strain of COVID-19 may cause a decrease in daily global demand by 1 million barrels. At the beginning of the week, oil fell sharply on fears of investors about the recovery of the global economy
The increase in the number of people infected with the delta strain of coronavirus in the world may lead to the fact that global demand for oil will decrease by 1 million barrels per day, according to the investment bank Goldman Sachs, the forecast of which is quoted by Bloomberg.
The pressure on demand due to the increase in the number of cases could last a couple of months, and the reduction could be less if vaccinations reduce the number of hospitalizations in emerging markets, analysts predict. In the third quarter, Goldman Sachs predicts a deficit in the oil market at 1.5 million barrels per day (previous estimate – 1.9 million).
At the beginning of the week, there were sales in the market. Oil became cheaper amid the conclusion of the OPEC + deal to increase production by 400 thousand barrels per day every month since August and investors’ fears due to the worsening situation with COVID-19, which could slow down the recovery of the global economy and, accordingly, reduce the demand for oil.
On July 19, a barrel of Brent fell by almost $ 5, falling below $ 69 for the first time since the end of May.
On July 20, prices stabilized – September Brent futures cost $ 68.63 per barrel, American WTI for August delivery – $ 66.44.
Caspian Barrel
