London: Organization of the Petroleum Exporting Countries (OPECDelta on Monday lowered its world oil demand forecast for the final quarter of 2021 because of the coronavirus pandemic, saying it would delay another recovery until next year when consumption exceeds pre-pandemic rates.
OPEC said in a monthly report that it expects oil demand to average 99.70 million barrels per day (bpd) in the fourth quarter of 2021, down 110,000 bpd from last month’s forecast.
OPEC said in the report, “The increased risk of Kovid-19 cases is primarily affecting fuel demand by the Delta variant, with oil demand going into the last quarter of the year.”
“As a result, oil demand is slightly lower adjusted in the second half of 2021, partially delayed by the recovery of oil demand in the first half of 2022.”
Governments, companies and traders are closely monitoring the pace at which oil demand recovers from last year’s crash. As predicted by OPEC, a rapid return could boost prices and challenge the view that the effects of the pandemic could curb consumption for a long time or for good.
Oil was trading above $73 a barrel after the release of the report. Prices have risen more than 40% this year, fueled by hopes of an economic recovery and OPEC+ supply cuts, although concerns about the delta version have eased.
Despite a downward revision in the fourth quarter, OPEC said world oil demand would grow by 5.96 million bpd, or 6.6%, throughout 2021, almost unchanged from the previous month.
The growth forecast for 2022 was adjusted to 4.15 million bpd compared to 3.28 million bpd reported last month and to 4.2 million bpd estimated by OPEC sources during the group’s last meeting on September 1.
“The pace of recovery in oil demand is now considered strong and is mostly occurring in 2022,” OPEC said.
“As vaccination rates increase, better management of the COVID-19 pandemic is expected and economic activity and mobility will return strongly to pre-COVID-19 levels.”
highest demand scene
Even with the latest changes, OPEC still has the highest demand growth figures among the three main oil forecasting agencies – itself, the US government and the International Energy Agency, an advisory to consuming countries that released its latest monthly report on Tuesday. .
OPEC and its allies, known as OPEC+, have been gradually cutting oil production to a record low last year because of the pandemic.
In July, they agreed to gradually increase production to 400,000 bpd a month from August and ratified the plan at their last meeting on 1 September.
The report showed OPEC output, led by Iraq and Saudi Arabia, rose 150,000 bpd to 26.75 million bpd in August. An involuntary cut in Nigeria reduced the scale of the supply boost.
OPEC said in a monthly report that it expects oil demand to average 99.70 million barrels per day (bpd) in the fourth quarter of 2021, down 110,000 bpd from last month’s forecast.
OPEC said in the report, “The increased risk of Kovid-19 cases is primarily affecting fuel demand by the Delta variant, with oil demand going into the last quarter of the year.”
“As a result, oil demand is slightly lower adjusted in the second half of 2021, partially delayed by the recovery of oil demand in the first half of 2022.”
Governments, companies and traders are closely monitoring the pace at which oil demand recovers from last year’s crash. As predicted by OPEC, a rapid return could boost prices and challenge the view that the effects of the pandemic could curb consumption for a long time or for good.
Oil was trading above $73 a barrel after the release of the report. Prices have risen more than 40% this year, fueled by hopes of an economic recovery and OPEC+ supply cuts, although concerns about the delta version have eased.
Despite a downward revision in the fourth quarter, OPEC said world oil demand would grow by 5.96 million bpd, or 6.6%, throughout 2021, almost unchanged from the previous month.
The growth forecast for 2022 was adjusted to 4.15 million bpd compared to 3.28 million bpd reported last month and to 4.2 million bpd estimated by OPEC sources during the group’s last meeting on September 1.
“The pace of recovery in oil demand is now considered strong and is mostly occurring in 2022,” OPEC said.
“As vaccination rates increase, better management of the COVID-19 pandemic is expected and economic activity and mobility will return strongly to pre-COVID-19 levels.”
highest demand scene
Even with the latest changes, OPEC still has the highest demand growth figures among the three main oil forecasting agencies – itself, the US government and the International Energy Agency, an advisory to consuming countries that released its latest monthly report on Tuesday. .
OPEC and its allies, known as OPEC+, have been gradually cutting oil production to a record low last year because of the pandemic.
In July, they agreed to gradually increase production to 400,000 bpd a month from August and ratified the plan at their last meeting on 1 September.
The report showed OPEC output, led by Iraq and Saudi Arabia, rose 150,000 bpd to 26.75 million bpd in August. An involuntary cut in Nigeria reduced the scale of the supply boost.
.