Buying bitumen
Buying bitumen
In this article, we will discuss the forecasts of the Bank of America on the buying bitumen, oil prices, and oil market in 2021. Generally speaking, Bank of America predicts that the price of Brent crude oil will reach $ 60 a barrel in the first half of 2021,
which is faster than expected due to the reduction of global oil reserves. It also believes that an improvement in
oil prices and buying bitumen will soon happen.
“Earlier in June, we raised our oil price forecast to $ 5 a barrel (/ bbl) and argued that Brent averaged,
“It will increase from $ 43 per barrel in 2020 to $ 50 per barrel in 2021.” said the analysts. However, Bank of America notes that:
Since then, oil futures have grown faster even if the market prices for immediate delivery are still finite. For this reason, and because the oil market deficit is
about to be 4.9 million barrels per day for the second half of this year and 1.7 million barrels per day for next year,
Bank of America BofA expects prices to jump.
How do US Shale areas affect the buying bitumen?
The bank’s analysts note that declining drilling rigs, especially in US shale areas, and declining
OPEC Plus oil production are some of the main factors driving the oil market to a supply shortfall. Nevertheless, demand is still under downward pressure due to prices. The International Energy Agency (IEA) and OPEC were the latest headlines in their monthly reports;
they expressed a cautious reminder.
The International Energy Agency (IEA) has said that oil demand will fall to 8.1 million barrels per day this year compared to last year,
while OPEC estimates the drop in oil demand this year at 9.1 million barrels per day.
With much of the oil demand eliminated, the news that oil supply increased in July is not in line with the facts of the oil market. According to the International Energy Agency (IEA),
last month Saudi Arabia refused to increase its optional production cut by one million barrels per day. Although the UAE’s production quota reduced, supply also reduced by 2.5 million barrels per day. Moreover, US output began to rise in July,
overshadowing what was going to be an increase in supply and bitumen buying.
As the final point, according to ANZ, oil demand is currently 88 million barrels per day. It’s good to know that this is 8 million barrels per day more than in April,
but still 13 million barrels per day less than the demand in August 2019.
Description:
It’s also good to know that Bank of America (BofA) is a multinational American investment and financial services bank with offices in New York, London,
Hong Kong, Dallas, and Toronto. In terms of size, it ranks second in the United States, after JP MORGAN CHASE. It is also the ninth-largest financial services institution in the world.
