On Tuesday, May 16, the International Energy Agency (IEA) reported on your monthly report, that the oil market is near balance. However, the Agency warned that even many efforts will be needed in order to reduce abundant oil reserves, especially of the United States, which should pump more oil this year from 2017.
In the document, the IEA confirms that the balance has arrived and is evolving to double, at least in the short term. In addition, stocks of most industrialized countries decreased by about 1 million barrels per day (bpd) in the first quarter of this year.
According to the Agency, if OPEC undertakes to keep the reduction in production, sustaining the level of 31.8 mbd, number reached in April, the reserves can be reduced and the value of the commodity valued. The delay to the stocks reflect the fall in supply, according to the report, occurred because the market is still absorbing the volumes that were produced before the deal between the cartel and the producing countries.
However, full recovery may still take a while, because the perspective is that by the end of this year, the reserves still remain above the five-year average. On the continuity of the cuts, two major producers have already demonstrated interest in keeping the Covenant: the Russia and Saudi Arabia, as reported earlier by Offshore Panorama.
But, the final decision on the extension of the agreement should only be set on the day may 25, when happens a new meeting between OPEC members and partner countries. We're still tracking details about the offshore world. Stay informed about the market of oil, gas, energy, gasoline, fuels, Petrobras, onshore and offshore you too. Visit the Panorama Offshore or Facebook. Remember: your business. Check out: www.panoramaoffshore.com.br www.facebook.com/panoramaoffshore.ACESSE AS REDES DA PANORAMA OFFSHORE: