WORLD OIL | From quiet skies over Europe to sparse traffic in America’s biggest cities, a recovery in global oil demand is faltering amid the resurgence in coronavirus.
That poses a particularly delicate challenge for the OPEC cartel and its partners, who next week plan to resume some of the crude output halted during the depths of the pandemic.
While the alliance is eager to ramp up oil sales after successfully reviving prices, the relapse in the world economy means that extra supply is arriving at a fragile moment, and could send the market lower again.
“We’re in quite a finely balanced place in terms of the scope to increase production,” said Alex Booth, head of research at market intelligence firm Kpler SAS. “You have to have quite a bullish view on the demand recovery to be able to justify any significant increase.”
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