U.S. shale producers are expected to restore roughly half a million barrels per day (bpd) of crude output by the end of June, according to crude buyers and analysts, amounting to a quarter of what they shut since the coronavirus pandemic cut fuel demand and hammered oil prices.
US stocks rose Tuesday as investor optimism over the US economic recovery and potential infrastructure spending overshadowed worries about a second wave of coronavirus cases.
Last week, chief commander of Iran’s Islamic Revolutionary Guard Corps Hossein Salami touted the Islamic Republic delivering its fuel tankers to Venezuela as Tehran’s “biggest display of power”.
US stocks traded sharply higher Tuesday on data showing US retail sales surged a record 17.7% in May.
In its monthly report on Tuesday, the International Energy Agency (IEA) forecast oil demand at 91.7 million barrels per day in 2020, 500,000 bpd higher than its estimate in May’s report, citing higher than expected consumption during the lockdowns.
A version of this story first appeared in CNN Business’ Before the Bell newsletter.
Top Chinese state refiner Sinopec Corp said on Tuesday it had started up a $6 billion new refinery and petrochemical plant in south China, making it the country’s third integrated complex to start operations in the past 18 months or so.
The IEA warns global oil demand will drop by $324 million a day in 2020, the biggest decline in history, before a rapid rebound in 2021
The International Energy Agency has warned that global oil demand will see its largest decline in history across the entirety of this year, but sees a “more stable footing” by the end of the second half of 2020, and a recovery in demand by 2021.
The IEA underlined that reduced jet and kerosene deliveries will impact total oil demand until at least 2022.
The UK’s upstream industry body Oil & Gas UK committed June 16 to halving the sector’s greenhouse gas emissions by 2030 and to a 90% reduction by 2040.