Comments from the OPEC Secretary General
- Headwinds of uncertainty that shocked the market last year continue to abate
- Positive global economic developments and resilient demand in Asia are encouraging
A short time ago, OPEC's joint committee said global oil stockpiles are on track to decline each month this year even if OPEC+ restores all of the missing 2.4 mbpd by June, including the Saudi voluntary cut.
In August, OECD inventories are set to drop below their 2015-2019 average.
This report raises the odds that OPEC brings back all the missing barrels. That's more aggressive than what's priced in and would hurt oil in the short term. In the long term, if OPEC is pumping at the max and inventories continue to decline then price has only one way to go.
