In its monthly report on the oil market, the International Energy Agency (IEA) has revised down the growth projections for oil demand for this year by 70,000 bpd due to the closure of China and high prices.
Additional comments
Refinery operations will increase by 4.7 million bpd between now and August, but market stress will continue.
Observed world oil inventories decreased by 45 million barrels in March.
Global refinery margins have risen due to depleted product inventorieswhich has limited the activity of the refineries.
Russian oil exports, at 8.1 million barrels per day, returned to the January-February average.
The new embargoes could accelerate the redirection of trade flows from Russian oil to Asia.
Despite the sanctions, total Russian oil exports increased in April by 620,000 bpd.
Russian oil supply losses could widen to about 3 million bpd from July.
Global Russian supply expected to decline by 1.6 million bpd in May and 2 million bpd in June.
Russia shut down nearly 1 million bpd of oil in April, reducing global oil supply to 98.1 million bpd.
Sanctions on Russia and lack of storage will cause Russian producers to close more wells.
A steady increase in volumes from OPEC+ countries in the Middle East and the US is expected as the closure of China’s wells reduces demand.
No sharp supply shortfall expected amid worsening Russian supply disruption.
Source: Fx Street
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