Global oil demand to record historic growth in 2021: OPEC

Global oil demand to record historic growth in 2021: OPEC

Global oil demand to record historic growth in 2021: OPEC

The panel that reviews the OPEC+ deal will consider whether the alliance should keep 9.6 million barrels of daily output off the market for another month, or taper the cutback to 7.7 million barrels as originally planned.

Total liquids demand is projected to reach 97.7m bpd next year.

Oil producers in the Middle East traditionally use more fuel oil domestically during the hot summer months, and that will be accentuated this year as people who would have travelled for vacation, stay at home because of the coronavirus disease (COVID-19) pandemic-related travel restrictions.

For 2021, OPEC expects demand growth of as much as 7 million bpd.

The oil market is getting closer to balance as demand gradually rises, OPEC's secretary general said on Monday.

The OPEC+ alliance, which includes non-members such as Russian Federation, is expected to announce at a meeting on Wednesday that it will phase out some of the curbs from next month.

The organization lifted estimates for demand in 2020 very slightly, by 100,000 barrels a day, projecting that consumption remains on track for a record annual slump of 8.95 million barrels a day.

Now Saudi Arabia and most individuals in the coalition help a loosening of the curbs, the delegates mentioned. These countries are pushing for the increasing of quotas.

On Saturday (11 July), the Wall Street Journal reported that OPEC and its allies including Russian Federation will face a push to ease oil production cuts introduced in April.

Iraq's new oil minister Ihsan Abdul Jabbar Ismail also vowed to make additional cuts until September for overproduction in May and June.

OPEC's 13 members suffered an 18.4 per cent contraction in their oil export revenue in 2019 on slumping prices, the report showed.

"The expected re-start of Libyan exports will only add to the vulnerability of the OPEC+ production restraint in keeping the energy complex heavily reliant upon a renewed expansion in risk appetite for any advances back to around this week's highs", said Jim Ritterbusch, president of Ritterbusch and Associates.

"There is a lot of optimism that the market can handle anything that is thrown at it, in terms of COVID", Croft said. A resurgence in coronavirus cases could dent oil demand through the end of the year.

OPEC said it expected US output in 2021 to grow by just 0.24 million bpd after falling by 1.37 million bpd in 2020 and a rise of 1.7 million in 2019.

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