OPEC lowers forecast for global oil demand growth in 2021

The forecast for the growth of global oil demand in 2021 has been lowered from 5.9 million barrels per day (mb/d) to 5.6 million barrels per day, OPEC Secretary-General Mohammad Sanusi Barkindo said at the 28th Meeting of the Joint Ministerial Monitoring Committee (JMMC) held via videoconference on March 31, Report informs with reference to OPEC press service.

“Global oil demand in 2021 is revised slightly to stand at 5.6 mb/d, and we need to keep in mind that demand contracted by a huge 9.6 mb/d in 2020,” the OPEC secretary-general said.

As RIA Novosti reported, citing a source, the OPEC + technical committee of experts on Tuesday lowered the forecast for the growth of oil demand in the world in 2021 by 300,000 barrels per day, to 5.6 million barrels per day. Earlier, OPEC + countries expected global oil demand to rise to 5.9 million barrels per day this year, after a significant reduction due to the coronavirus pandemic in 2020.

“The positives offer hope, but we need to remember that the environment remains challenging, complex, and uncertain, with the market volatility we have witnessed in the last two weeks of March a reminder of the fragility facing economies and oil demand,” Barkindo said.

According to him, expectations for global economic growth in 2021 are now higher at 5.1%, compared to 4.8% at our last meeting.

“However, we should not be out smelling the flowers just yet, and this forecast may be revisited. It is surrounded by uncertainties, including the prevalence of COVID-19 variants; the uneven rollout of vaccines; further lockdowns and third waves in several countries; and inflationary pressures and central bank responses,” the secretary-general added.