Global oil demand to increase by 5.9mb/d in 2021 -OPEC

The Organization of the Petroleum Exporting Countries (OPEC) has projected global oil demand to increase by 5.9million barrels per day (mb/d) year-on-year  in 2021.

For 2021, oil demand is expected at 5.9 mb/d, to stand at 96.3 mb/d. Oil requirements in 1H21 are adjusted lower, mainly due to extended measures to control COVID-19 in many key parts of Europe. #MOMR pic.twitter.com/df3As0jGkP

— OPEC (@OPECSecretariat) March 12, 2021

According to the OPEC’s latest monthly market report, in 2021, world oil demand is forecast to increase by 5.9 mb/d, reflecting the positive economic impact on oil demand during 2H21. Total oil demand is foreseen to reach 96.3 mb/d with most consumption appearing in the 2H21.

Oil demand in the OECD region is expected to increase by 2.6 mb/d to reach 44.6 mb/d in 2021.

Oil requirements in 1H21 were adjusted lower mainly due to extended measures to control COVID-19 in parts of Europe and higher unemployment rates in the US.

At the same time, 2H21 oil demand was adjusted higher to reflect an expectation of a solid economic recovery and the positive impact from vaccination rollouts. OECD Americas is projected to see the highest increase, on the back of recovering transportation fuels and healthy light- and middle-distillate requirements.

Oil demand in the non-OECD region is estimated to rise by 3.3 mb/d to reach 51.6 mb/d in 2021. Demand growth is anticipated to be driven by China, followed by India and Other Asia.

Support will be provided by a healthy recovery in economic activities, as well as encouraging demand from the industrial sector and improving transportation fuel requirements. Demand for petrochemical feedstock is also forecast to support demand growth in 2021.

Amaka E. Nliam