One of the oil industry’s most trusted agencies, the US Energy Information Administration, calls on countries to increase production.
In numerical figures, EIA asks for 5.26 million barrels of addition from current levels on the remaining months of the year.
Another 3.07 million barrels will enter into force by 2022. This comes as global demand for crude by the end of next year is projected to come at nearly 100 million barrels per day.
It particularly directed its message to OPEC+ member states which still take its production comeback as slow as it could get.
A representative from the organization said that the elite oil group should now ramp up production further to ensure that the world is “adequately” supplied.
This is despite the still volatile global demand as some of the world’s leading economies remain subdued from the pandemic.
Another factor that adds to the overall uncertainty is the outcome of the US-Iran nuclear talks which made rounds in the headlines last week.
Last week, the American agency gave a bullish outlook on a demand-led recovery in the market after reporting a 2.1 million barrel draw for the week ending June 4.
This is in conjunction given by market strategists from leading financial firms all around the world that are also positive on the future of crude oil.
On the other hand, what experts find intriguing on EIA’s recent statement is its call on countries for adherence to Paris Climate Agreement.
The treaty aims to bring down global warning at 2 degrees Celcius above pre-industrial levels. One of the main solutions to achieve such a goal is a sharp shift away from fossil fuels and greater investment in renewable energy.
Goldman Sachs’ Prediction
Before anyone else, Goldman Sachs is the first to believe in the crude market’s ability to rebound at a faster rate than expected.
The financial juggernaut gave the black gold an $80.00 per barrel price prediction at a time when the market is in bonkers from lukewarm demand.
Today, traders wish that they had doubled down on such advice as oil is swiftly moving to touch the critical resistance threshold.
Currently, oil demand has already managed to clock in 5.4 million barrels per day which is one of the fastest recoveries recorded in history.
With this, Goldman noted that there is still a big room for growth and it will not be surprising if Brent crude hits $80.00 per barrel in the coming days.