OPEC expects the continued rise in natural gas prices and increase in demand to encourage demand on oil.
The group has reduced its estimates for its 2021-member oil supplies by 210,000 bpd from its previous expectations of 63.64 million barrels per day.
In 2021, global demand for oil declined to 96.60 million bpd.
OPEC said in its report in October that demand for OPEC was amended from crude oil for 2021 to 27.80 million bpd, including 29.36 million bpd in the fourth quarter.
This is much higher than OPEC’s 27.33 million bpd in September, according to secondary sources used by FAO to track production.
The report predicted that global oil demand will rise by 5.8 million bpd to 96.60 million barrels per day in 2021.
The expected growth in demand for 2022 without changing at 4.15 million bpd to 100.76 million bpd, which is basically a return to pre-pandemic levels.
However, seasonal factors in winter and spring means that most demand growth will be focused in the second half of next year.
OPEC has been supported by demand through the health momentum in the main consumer countries and better management of pandemic.
Offer from outside OPEC is expected to reach 66.66 million bpd in 2022 by recording a growth of 3.02 million bpd.
The group and its allies agreed in an alliance known as OPEC+ to increase their collective production by 400,000 bpd, and about 250,000 bpd were allocated to OPEC.
Unless there is a significant increase in OPEC’s raw production in the coming months, the oil market will be largely narrowed, pointing to the continued effects of the Eida hurricane on the US oil production, as well as maintenance and supply of distribution in Kazakhstan and Canada.
In a connected context, crude oil prices retreated after previous extensive gains, fearing that energy prices in the world to arrive at levelsthat would destroy demand and slow growth.
The level of inflation in the main consuming countries, especially China and India, has already reached limits to breathe economic growth, and curb crude oil prices rise, which is related to an inverse relationship with oil.