S&P Global Platts said in its latest report that crude oil prices declined on subdued global cues while predicting that the oil market will turn into surplus by early 2022, according to an analysis prepared by the OPEC secretariat and seen by S&P Global Platts.

Key takeaways

“Holding to the agreed production increases will flip the market from deficit to surplus by the first quarter of 2022.“

“The analysis assumes global demand growth of 6 million b/d in 2021 and 3.3 million b/d in 2022.”

“Sees OECD oil inventories ending this year at 122 million barrels below the 2015-2019 average that the group is targeting before rising to 10 million barrels above by the end of 2022.”

Market reaction

WTI shrugs off the above report, as it rides higher on the risk-on market wave. The US oil is adding 1.11% on a daily basis, currently trading at $71.05.