The EIA, the US Energy Information Administration, forecasts
a significant crude oil inventory draw in the coming weeks in response to the
strong demand of the commodity.
According to its latest projections, the supply of
crude oil will remain constrained in the short term due to the recent OPEC+
decision to stick to the existing production level and the voluntary addition
production cut of 1 million bpd announced by Saudi Arabia for the months,
starting from February to April.
Despite recent steep rise in price, the EIA still
maintain that the price will remain around $67 a barrel. It expects that the
OPEC+ will increase the production of crude oil for May as the demand start
growing due to heightened economic activities thanks to the relative success of
the global vaccination programmes.
In order to meet the rising demand, the EIA, expects
that the US shale oil producers will be back in action in light of rising oil
price; the scenario may have prompted the OPEC+ to increase the production for
May.
