Oil demand continues to exceed supply. As a result, Brent posted a sharp growth last Friday, ending the very volatile week.
Supply was reported to remain limited throughout the year because OPEC said production will increase by only 400,000 bpd starting August.
The closing price last Friday was very different from the opening price on Monday, when oil fell as much as 7%. Fortunately, the loss was won back by investors who expected oil demand to remain strong.
But Commerzbank said the forecasts for demand were exaggerated, and that oil will drop down again.
Even so, analysts at ANZ Research argued that no matter how much OPEC increases output, it will not be enough to maintain the market balance, and stocks in the United States and other countries will continue to fall.
In fact, for four consecutive weeks, US companies tried to expand the number of oil and gas rigs, but drilling growth remained modest due to austerity.
Analysts at Gelber & Associates specified that although the number of rigs doubled, drilling remains historically low.