OPEC keeps forecast for growth in oil demand

Growth in global oil demand in 2021 will amount to 6 million barrels per day (bpd), the estimate hasn’t changed compared to July, according to the OPEC August report, Report informs referring to TASS.

Demand growth expectations remained unchanged, despite improvements in key macro forecasts. Overall, in 2021, oil demand will recover to 96.6 million bpd. The cartel also retained an estimate of the demand recovery for 2022 at 3.3 million bpd.

According to OPEC estimates, global oil demand will cross the 100 million bpd mark in the second half of 2022 and will average 99.9 million bpd for the year. The organization believes that the pandemic as a whole is being controlled by high rates of vaccinations and improved treatments.

In addition, OPEC raised its forecasts for the growth of oil supplies from non-OPEC countries for 2021 and 2022. This is mainly due to the decision of the OPEC+ alliance to restore oil production. In addition, production growth will accelerate in Canada, China, the US, Norway, and Brazil.

Thus, OPEC raised its forecast for the growth of supplies from non-OPEC countries for 2021 by 0.27 million bpd and by 0.84 million bpd for 2022. This is because the OPEC+ countries in July decided to increase production by 0.4 million bpd per month until September 2022. OPEC expects a revision of production forecasts in the US and Canada. At the same time, OPEC names Canada, Russia, China, the US, Norway, and Brazil as the main drivers of oil production growth.