Brent Drops as OPEC Expressed Disappointment over IEA’s Report
After falling by 4% this week, Brent closed at about $66 per barrel Friday as the Organisation of Petroleum Exporting Countries (OPEC) calls the United States International Energy Agency’s net-zero emission report disappointing.
In a new report released during the week, IEA said the world doesn’t need any new oil and gas investments ever if it is to reach net-zero emissions.
Amidst uncertainties in the oil market, Brent price lost more than 4% during the week on fears of slow economic and global oil demand recovery due to rising Covid-19 cases in Asian countries.
In its internal briefing report discussing the IEA report, OPEC said, as carried by Reuters:
“The claim that no new oil and gas investments are needed post-2021 stands in stark contrast with conclusions often expressed in other IEA reports and could be the source of potential instability in oil markets if followed by some investors.”
Moreover, developing countries will need financial and technical help to have a chance to go on the net-zero pathway, OPEC noted.
Meanwhile, there is also worries of a return of Iranian crude to markets from the possible revival of the 2015 Iran nuclear deal, which could possibly result to supply glut.
International benchmark Brent crude traded at $65.85 at on Friday, after posting a 4.4% decrease from Monday when it registered $68.88 per barrel.
Similarly, the American benchmark West Texas Intermediate (WTI) traded at $62.77 at the same time on Friday, jump 4.1% relative to $65.46 a barrel on Monday.
It could be recalled that crude oil prices started the week on a negative note over weakened demand outlook –driven by developments in Asian countries.
Rising caseloads of coronavirus in India has plunged oil prices by about 3% Wednesday as the country reported highest daily deaths of 4,529.
Again, prices came under intense pressure as negotiators say progress has been achieved in reviving the 2015 Iran nuclear deal in Vienna.
Oil traders, investors believe that a large volumes of Iranian crude in the market would reverse upward trend in the space.
Meanwhile, as lockdowns gradually eased in some Europeans countries, UK and Portugal in addition to reversal of in United States, the oil market found support level in the week.
The upward momentum in prices was also elevated this week over the less-than-expected increase in US crude stocks. Inventories increased by 1.3 million barrels to 486 million barrels, less than the market expectation of a 1.6 million-barrel rise.
Brent Drops as OPEC Expressed Disappointment over IEA’s Report
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