In this report, we tend to explore those variables that will affect the oil market, the ability to buy bitumen 60/70, and bitumen prices in 2021. It’s essential to say that we have mentioned some parts of the Forbes report in our article.
Over the past few months, the price of oil with low volatility in the range of $ 40 has shown great stability. According to Forbes author Ed Harris, this price level is not bad for OPEC,
because oil production will remain uneconomic for most companies drilling on American soil. A low level of drilling also means that US production will continue to decline from the current 10.5 million barrels.
It’s worth mentioning that before the Covid-19 outbreak,
the country was able to reach a record production of 13 million barrels per day with the help of shale,
which has long made the United States a net exporter
and the world’s largest producer especially in ” Buy bitumen 60/70“.
Harris also says that OPEC members certainly want to generate more revenue in the industry,
but given the damage they have already suffered, they are unable to bear the untimely recovery of shale production.That’s why Forbes expects OPEC Plus not to actively cut production next year. To be more specific, this is due to the prevention of oil from advancing
above the $ 50 per barrel level, which is the price level that meets the minimum cost of shale oil production.
Eventually, low prices become a solution to rising oil prices in the medium term, as both shale producers
and Venezuela appear to be in an absolute decline and to face a permanent decline in production. At the same time, OPEC Plus may begin to manage the market in such a way
that prices will slowly rise from current levels to $ 50 a barrel, thus encouraging low-cost producers
in the Middle East and elsewhere to return to drilling.
Otherwise, declining production of active wells will lead to oil recovery after the corona crisis
has subsided and prices have risen sharply, which may not be good for OPEC Plus (because it also returns shale to the market).To sum up, many factors affect the
bitumen price and “buy bitumen 60/70“. However, we only mentioned some in this article.