The price of oil has been on the rise for the better part of the last few months, as the economy was opening back up, but suppliers are cautious about increasing their outputs. It turns out OPEC+ was right about being cautious when increasing its production output. Right after the supply increase, the demand for oil took a hit as the Delta variant Coronavirus is bringing economic recovery to a halt. The travel industry, as well as many other industries that were on their way to full recovery, are fully affected by new developments emerging, and the general demand is sliding.
Also, Beijing’s crackdown on the misuse of import quotas combined with the impact of high crude prices could see China’s growth in oil imports sink to the lowest in two decades in 2021, despite an expected rise in refining rates in the second half. Global oil markets are expected to remain in deficit despite a decision by the Organization of the Petroleum Exporting Countries and their allies to raise production through the rest of the year.
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