The Organization of Petroleum Exporting Countries (OPEC) said it expects a slow recovery for global demand for crude oil production during the current year. The new forecast is contrary to previous expectations as a result of the Coronavirus pandemic repercussions.
OPEC stated in its monthly statement that the demand for crude oil will increase by 5.79 million b/d in 2021. The total will be 96.05 million b/d.
OPEC pointed to the indicators of global economy indicators during 2021. However, OPEC said, demand for crude oil is proceeding at a slow pace, with expectations that it will increase in the second half of 2021.
OPEC said it expects less global economic contraction in 2020 from (-1.4%) to (3.9%). The organization lowered its forecast on the growth of global oil demand by 30,000 b/d in 2020.
The organization’s expectations decreased by 100,000 b/d in 2021, in addition to reducing its expectations for the growth of supplies from outside OPEC by 200,000 in 2021.
OPEC stated that it raised its forecast for global demand for OPEC oil growth by 300,000 b/d in 2020. The organization as well raised its forecast for global demand for crude oil to grow by 300,000 b/d in 2021.
Oil Production expectations
PetroLogistics corporation, tracking oil supplies and tankers company, had expected OPEC supplies last November to exceed 25 million b/d.
This is an increase of 300,000 b/d over the volume of its production last October, supported by the production of Venezuela and members from African countries, while the supply in the Middle East decreased slightly.
It also expected at the time that the Libya’s production would exceed one million b/d in Novembe. At eh same time, Iran and Venezuela increased the volume of the offered quantities.
The two countries were excluded from the commitment to OPEC+ quotas.
OPEC + is facing a major challenge during March, pending a meeting of OPEC ministers.
The organization will strive to restore the oil market balance that was damaged during the Coronavirus pandemic crisis.
Further read: Saudi Oil Production In 2020 Is The Lowest In 10 Years