Fundamental analysis
16 July, 2021
Oil prices changed little on Friday, heading for their biggest weekly drop since March after supply concerns spooked investors, with OPEC likely to add more barrels amid expectations that demand is returning as more countries recover from the pandemic. Saudi Arabia and the UAE reached a compromise this week, paving the way for OPEC+ to finalise an agreement that would allow more supply into the market. OPEC said on Thursday it expects world oil demand to increase next year to around levels seen before the pandemic, about 100 million barrels per day (bpd), led by demand growth in the U.S., China and India. A large decline in crude stockpiles in the United States has done little to support prices as a rise in gasoline inventories in a week that included the Fourth of July holiday, when driving usually surges, raised fresh demand concerns.
