Column: Climbing oil prices signal need for more output: Kemp

LONDON, June 16 (Reuters) – Oil prices are signalling the need for an urgent increase in production from OPEC+ and U.S. shale companies as the global economy and oil demand recover more rapidly than expected from the pandemic. Futures markets are sending a strong and unambiguous message that petroleum inventories are already tight and expected to shrink further in the second half of the year and into 2022.OPEC+ countries are still restricting liquids production by more than 3.0 million barrels per day (BPD) compared with the pre-epidemic levels to cut inventories and raise prices (https://tmsnrt.rs/3wB4XDy). And U.S. liquids output is also down by more than 1.5 million BPD, according to estimates by the U.S. Energy Information Administration (“Short-Term Energy Outlook”, EIA, June 8).

READ MORE; https://www.reuters.com/business/energy/climbing-oil-prices-signal-need-more-output-kemp-2021-06-16/

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