Global oil demand may recover more than seasonally

The OPEC + meeting decided to continue to maintain the production increase plan formulated in early April. After the production increase in May and June, the total production increase was 841000 barrels per day in July. However, it is expected that global demand may recover more than seasonally from July to August. Therefore, it is believed that the negative impact of the production increase plan on oil prices is limited, and market prices have reflected expectations in advance.

The bank also pointed out that changes in shale gas supply in Iran and North America may change OPEC’s binding force on supply, while there may be little upward space for oil prices.