OPEC’s Barkindo: OECD commercial stocks well above latest five-year average in Q3 2020

Dhwani Mehta FXStreet

The Organization of Petroleum Exporting Countries (OPEC) Secretary-General Mohammad Barkindo said, in remarks at the G20 Energy Ministers virtual meeting, the OECD commercial oil stocks could stay well above the five-year average in the third quarter of this year, courtesy of a potential market balance.

Key quotes

“The expected supply and demand balance would result in OECD commercial stocks standing well above the latest five-year average in Q3/2020.”

“However, stocks would then fall in the fourth quarter 2020, to stand around 123 million barrels above the latest five-year average.”

Market reaction

WTI shrugs-off the weekend comments by the OPEC Chief, as coronavirus-induced fresh localized lockdowns re-ignite oil demand concerns.

The US oil posts small losses to trade just above $40 mark, at the time of writing.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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