Oil: OPEC Maintains Demand Growth Expectation for 2021
Organization of Petroleum Exporting Countries (OPEC) keeps its forecast for world oil demand unchanged with 6 million barrels per day and total global demand reaching 96.6 million barrels per day, according to OPEC’s Monthly Oil Market Report on Thursday.
The total demand forecast was revised down amid slower than anticipated demand in the main OECD consuming countries but this was counterbalanced by better-than-expected data from OECD Americas in 2021, which is now projected to continue through the third quarter of this year, said in the report.
Positive developments on the increasing mobility and the pace of vaccine programs impact the demand while COVID-19 variants create uncertainties for the world oil demand.
The report further stressed a tightening of oil markets although investors remain optimistic about a further oil demand recovery during the summer holiday season.
In the OECD region, oil demand is anticipated to rise by 2.7 million barrels per day to reach 44.7 million barrels per day of total demand. This is nearly 3 million barrels per day lower than total demand in 2019, mainly due to a limited recovery in transportation fuel, especially jet fuel, the report said.
OECD America’s demand is anticipated to rise the most in 2021, led by the US on the back of recovering gasoline and diesel demand.
In the non-OECD region, oil demand is anticipated to rise by 3.3 million barrels per day to reach 51.9 million barrels per day of total demand in 2021. That is nearly 0.4 million barrels per day lower than 2019 total demand, despite expectations of fully recovering demand in China and India.
“A steady increase in industrial and transportation fuel demand supported by recovering economic activity is projected to boost demand in 2021,” the report said.
OPEC crude oil production rises in June
Global oil production in June increased by 1.1 million barrels per day compared to the previous month to average 94.5 million barrels per day.
The report shows that OPEC crude oil production increased by 590,000 barrels per day month-over-month to an average of 26 million barrels per day, while the share of OPEC crude out of total global production rose to 27.6% in June, marking a 0.3% decrease compared to the previous month.
Crude oil output increased mainly in Saudi Arabia while production decreased primarily in Iraq.
Non-OPEC liquids production in June increased by 520,000 barrels per day compared with the previous month to an average of 68.46 million barrels per day.
Oil: OPEC Maintains Demand Growth Expectation for 2021
