OPEC: Oil Demand to Grow by 6MB/D in 2021

OPEC: Oil Demand to Grow by 6MB/D in 2021

The Organisation of Petroleum Exporting Countries (OPEC) on Thursday said there are indications that global demand for crude oil is swinging in the positive direction to grow by 6million barrel per day (mb/d) after its 9.3mb/d 2020 decline.

President of OPEC Conference, who is also the Minister of Mineral Resources and Petroleum,  Diamantino Pedro Azevedo, disclosed this in his opening address to the  meeting of the OPEC via videoconference. It is at the ongoing Conference No 15/2021in Vienna, Austria.

Meanwhile, there was a bullish demand for crude causing Brent Crude to hit $76.49 per barrel from $75.32b/d of the previous day.

Azevedo noted that in the seven months since the last OPEC conference, the global economy has shifted from reverse to forward gear.

According to him, global growth is now expected at 5.5 per cent this year – from a contraction of 3.4 per cent in 2020.

“The outlook for worldwide oil demand is also moving in the right direction, and is now on course to grow by 6 mb/d in 2021, after its turbulent 9.3 mb/d decline last year,” he said.

He recalled that the latest OPEC Monthly Oil Market Report projects a strong rebound of oil demand in the second half of the year, putting oil exporters within striking distance of pre-pandemic levels in the fourth quarter.

Meanwhile, he commended Nigeria and the Minister of State, Petroleum Resources, Chief Timprye Sylva on the country’s 50th anniversary as a member of the organisation.

Azevedo said the golden milestone provides an opportunity to reflect upon Nigeria’s rise as a global energy supplier and partner; its pivotal support for oil market stability; and its contributions to expanding OPEC’s cooperation with other producing and consuming countries.

He underscored the importance of Saudi Arabia’s additional voluntary adjustments, including those in February, March and April, which have reinforced and reaffirmed exporters’ overall efforts to keep the market on the road to recovery.

The OPEC President added that “Equally important, these generous contributions provided a window of opportunity for Participating Countries that needed extra time to make up for overproduction.