According to Bloomberg, the excess of oil reserves accumulated during the coronavirus pandemic has almost reached zero.
The International Energy Agency (IEA) said that in February 2021, less than one-fifth of the accumulated fuel volumes remained in the oil storage facilities. From the winter up to now, oil reserves dropped even more.
A peak in oil inventories was logged in June 2020. Then, in global storage facilities, oil reserves jumped by 249 million barrels. This volume exceeded the average reading during the period from 2015 to 2019. However, in February this year, fuel reserves slumped to 57 million barrels.
Economists suppose that the global oil market rebalancing and mounting demand from the recovering countries may lead to the oil appreciation to $67 per barrel.
While oil producers are likely to benefit from the situation, heads of various states may face some problems. Some countries’ authorities are worried about a possible inflation amid higher prices of hydrocarbons. Notably, the best part of the remaining oil, built up during the pandemic, is in China.
Specialists at Citigrouр think that in the second half of 2021, global oil inventories may slide by 2.2 million barrels a day. This could be caused by the fact that demand exceeds supply. As a result, Brent crude may jump to $74 per barrel or even higher.
Earlier, analysts predicted a decline in oil prices to $10 per barrel by 2050. The forecast may come true, if the world reaches the goals of the Paris Agreement and switches to renewable energy.
Economists have estimated that by the middle of the XXI century, demand for oil will fall by 70% compared to the current level. The slide is likely to start in 2023, and then, will only accelerate. Experts are sure that by 2030, Brent benchmark will decrease to $37-$42 per barrel and in 20 years, it will trade at $10 per barrel.
