Standard Chartered: Giant oversupply in the oil market will be eliminated by July
Rise of world demand for oil on the fact of "restart" of many economies after the coronavirus and reduction of supplies from OPEC + by July will eliminate the surplus formed in April, say Standard Chartered analysts.
In April, the volume of redundant deliveries was unprecedented, reached 21,3 million b/d, experts of bank assert. However they are sure that the gap between demand and supply will be reduced rather quickly. Half of this gap will already be covered by the end of May. In June, the excess supply will already be about 4.6 million b/d, and by the end of July the market will have a moderate excess of demand over supply.
However, oil reserves and the volume of supply outside OPEC will limit the growth of prices, keeping oil quotations in "depressed" condition, noted the experts of Standard Chartered.