Thursday 11 February 2021

OPEC again cuts 2021 oil demand view, sees second half pickup | Reuters

OPEC again cuts 2021 oil demand view, sees second half pickup | Reuters

World oil demand in 2021 will rebound more slowly than previously thought, OPEC said on Thursday, adding to a series of downgrades as the impact of the pandemic lingers.

Demand will rise by 5.79 million barrels per day (bpd) this year to 96.05 million bpd, the Organization of the Petroleum Exporting Countries said in a monthly report, trimming its growth forecast by 110,000 bpd from a month ago.

The prospect of weaker demand has already prompted OPEC and its allies, known as OPEC+, to slow their plan to boost output. More demand, rising prices and lower rival supply could support the case for more easing, but Iraq said on Wednesday OPEC+ was likely to keep current cuts in March.

“While the global economy is showing signs of a healthy recovery in 2021, oil demand is currently lagging, but is forecast to pick up in the second half of 2021,” OPEC said in the report.

OPEC has steadily lowered its 2021 oil demand growth forecast from 7 million bpd expected in July. Still, the latest forecast is stronger than the prediction made in an internal OPEC report seen this month by Reuters.

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