Massive vaccines rollout are being distribute worldwide, continued global demand recovery after eased lockdowns.
Hurricane season in GoM.
OPEC+ gradually increase supply by 0.4 mmb/d from Aug-Dec’21
Uncertainty over Covid-19 situation as Delta coronavirus variant rising in several countries.
Stronger U.S. dollar was also weighing on prices.
Market Highlights in 2021:
Many countries and regions are relaxing lockdowns as the pandemic largely comes under control. Expected oil demand recovering after Covid-19 impact.
Progress of Covid-19 mass vaccination should halt the pandemic.
In 2021, EIA forecast global oil demand will recover by 5.3 mmb/d to 97.6 mmb/d (lower from 5.4 mmb/d YoY in the previous report), as rising of new Delta variant and lower vaccination campaigns in Asia continue to pressured oil demand.
Uncertainty over Covid-19 situation.
Concerned of supply increase as U.S.-Iran nuclear talks are making progress.
Concern of new policy of FED may eventual withdrawal of monetary policy support.