The Wall-Street bank raised its May global demand estimate by 1.4 million barrels per day (bpd), but still sees a decline of 16 million bpd from pre-COVID levels.
However, recovering demand and lower output would push the global oil market into deficit in June, it said in a note dated May 13.
It comes after what the IEA Executive Director Fatih Birol described as “Black April,” when the price of U.S. crude futures tumbled to around negative $40 a barrel.
Since then, the outlook has somewhat improved in energy markets and oil prices have rebounded from their April lows.
“Oil production is reacting in a big way to market forces and economic activity is beginning a gradual-but-fragile recovery,” the IEA said. “However, major uncertainties remain.”
“The biggest is whether governments can ease the lockdown measures without sparking a resurgence of Covid-19 outbreaks,” the Paris-based energy agency added.
Another risk, the group said, was whether oil producers OPEC and its non-OPEC allies, sometimes referred to as OPEC+, would achieve a high level of compliance with its agreed output cuts.
“These are big questions — and the answers we get in the coming weeks will have major consequences for the oil market,” the IEA said.
From the Bakken:
14 rigs operating in the Bakken, I'm down to 1.
Estimated 60% of Bakken production shut in.
ND light sweet (Bakken) $4.50 at the wellhead.
Much appreciated Joe!