the oil Market is moving to the biggest surplus of oil reserves in the first half of 2020. It may be two to four times more than the highest surplus recorded so far, says IHS Markit.
According to IHS, Markit, a glut in the first half of 2020 may reach levels of 800 million barrels to 1.3 billion barrels. This is 2-4 times more than the previous largest excess of 360 million barrels at the end of 2015 or early 2016.
the Largest of perenasytil is coming against the background of how the demand for oil falls because of the pandemic coronavirus, and former allies Saudi Arabia and Russia promise to flood the market with oil, because the lead-out price war for market share.
“This global oversupply has not happened. Prior to that, the largest global surplus over the first half of this century amounted to 360 million barrels,” said Jim Burkhard, IHS, Markit.
According to forecasts of IHS, Markit, in the period from February to may the monthly glut can be from 4 million to 10 million barrels per day.
Analytical and Advisory company, reported that demand for oil in the next 2 months could be reduced by 10 million barrels a day.
In this quarter the decline in demand for oil would be the biggest in the entire history of observations, even more than the decline during the financial crisis of 2008, says IHS, Markit.
In April, Saudi Arabia is preparing to launch additional 2.6 million barrels per day, UAE ready to add another 1 million barrels per day, Russia promised to increase production as the intensity of the price war on oil.