Mid-Week Review – March 24, 2021

EIA Expects Crude Prices to Rise Through April

In its March Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) expects Brent crude oil prices will average $64 per barrel (b) in the second quarter of 2021 and then fall to less than $60/b through the end of 2022. Higher crude oil prices in March and April are primarily a result of lower crude oil production from members of the Organization of the Petroleum Exporting Countries (OPEC) and partner countries (OPEC+), as announced at their March 4 meeting. Click Here to read more from the EIA.

Gasoline Demand Has Peaked, Global Forecaster Says

The world’s thirst for gasoline isn’t likely to return to pre-pandemic levels, the International Energy Agency forecast, calling a peak for the fuel that has powered personal transportation for more than a century. The Paris-based energy watchdog, in its closely followed five-year forecast, said an accelerating global shift toward electric vehicles, along with increasing fuel efficiency among gasoline-powered fleets, will more than outweigh demand growth from developing countries. Click Here to read more from the Wall Street Journal.

Oil Prices Fall as European Lockdowns Dampen Demand Prospects

Oil prices dropped sharply Tuesday as widening COVID-19 lockdowns in Europe weighed on expectations of stronger regional demand for the commodity. Brent oil, the international benchmark, was on course for a second straight loss. Brent has declined by nearly 5% over the past month but has more than doubled over the past 12 months. West Texas Intermediate crude futures  fell 4.9% to $58.47 a barrel. Click Here to read more from Business Insider.

Oil Tumbles 4% On Concerns Over Europe Curbs, Rollouts

Oil prices fell more than 4% on Tuesday, hit by concerns over new pandemic curbs and slow vaccine rollouts in Europe as well as a stronger dollar. Brent crude futures were down by $2.61, or 4%, to $62.01 a barrel, having hit a low of $61.41. West Texas Intermediate (WTI) U.S. crude futures fell by $2.71, or 4.4%, to $58.85, after falling to as low as $58.47. Both contracts traded near lows not seen since February 12. Click Here to read more from CNBC.