In its latest report, the Organization of the Petroleum Exporting Countries (OPEC) has pointed to indications that the global demand for oil may rise even more than expected.
The report sticks to the previous reports’ estimate of a 4.15 million barrels per day (bpd) increase in the global oil demand this year, but hints that a strong post-pandemic economic recovery points to the upside. Regarding the demand outlook for 2022, the report said:
“Upside potential to the forecast prevails, based on an ongoing observed strong economic recovery with the GDP already reaching pre-pandemic levels.”
In a separate but related commentary, OPEC said:
“As most world economies are expected to grow stronger, the near-term prospects for world oil demand are certainly on the bright side.”
Global oil consumption is set to exceed 100 million bpd this year for the first time since the COVID-19 pandemic. Note that OPEC’s estimates are largely unchanged because it made the early assumption that the Omicron wave would be relatively mild compared to previous waves of COVID-19.
The OPEC+ group is currently relaxing its production cuts to meet the increasing demand, but the report revealed that some members are struggling to produce more crude oil, with some even reporting a drop in production.
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