Global Oil market is TIGHT - Jan 28

[dan_s]

(Bloomberg) -- Global oil-market balances have turned
markedly less bearish following US sanctions on Russia and
OPEC+’s decision to delay production increases, Bank of America
Corp. said.

The bank no longer expects a large surplus this year and
sees Brent crude averaging $75 a barrel, analyst Francisco
Blanch wrote in a report. It had previously projected that
supply would eclipse demand by about 750,000 barrels a day.

The shift follows this month’s unprecedented US curbs on
Russian oil and OPEC+’s December decision to delay output hikes.
At the same time, Donald Trump’s presidency has injected more
volatility into the market, with comments on Ukraine, OPEC and
tariffs, while speculation swirls over sanctions elsewhere.

“The disruptions to Russian supplies and the hawkish tone
on Iran and Venezuela will likely prevent a big oil-inventory
build,” Blanch wrote. “We no longer expect a market surplus in
2025.”

Like many oil watchers, BofA had previously said a surge in
supply from outside OPEC+ would keep a lid on prices this year.
However, the bank now sees a surplus of only 100,000 barrels a
day — an amount that’s effectively a rounding error in a market
that consumes more than 100 million barrels daily.
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MY TAKE: Oil demand will ramp up by over 2 million bpd starting in mid-March through June. < Like it does every year.

[Cliff_N]

Hopefully, Bank of America will stop discriminating against OIL and Gas sector after the public tongue lashing of their CEO by Trump. Maybe this was a first step to stop the program of misinformation about supplies.

[KGardiner]

Speaking of market manipulators; I’ve never really understood the IEA’s game. If they want to increase the World’s carbon emissions, then keep trying to talk down oil prices so we will all consume more. Yet they say we need to reduce emissions! So talk prices up instead.

Which is it???
Make up your mind!

Kevin

[dan_s]

Oil demand will continue to rise in lockstep with population growth. There is nothing that IEA can do to stop that.

The price of oil will go up because the cheap oil has been harvested.

[Cliff_N]

Many of the climate alarmists want less humans. This was the solution of Michael Moore in a recent film.