Demand For OPEC Crude To Hit 29.8 Million Barrels Per Day in 2021–Report

The Organization of Petroleum Exporting Countries has forecasted that demand for crude oil  produced by its members will  rise   to 29.8 million barrels per day in 2021.

The demand increase, according to the  July Oil Market Report publshed by the organisation,   will be   6 million barrels per day higher  than the 2020 level.

The report hinged the  projected  increase on  expected rise in global oil demand as the global economy recovers.

It noted that OPEC member countries were cutting production to clear the glut left behind by the Covid-19 crisis.

According to the Report, May data showed that total OECD commercial oil stocks rose by 29.9 mb, month-on-month to stand at 3,167 million barrels.. 

Non-OPEC supply is set to plunge by a massive 3.26 million barrels a day in 2020, and will rise by only 920,000 barrels a day the following year. 

It could represent a period of breathing space for an organization that saw its market share eroded for much of the last decade by American shale drillers.

OPEC’s estimates form a more optimistic outlook for the cartel than that published last week by the International Energy Agency, the Paris-based institution that advises consuming nations. 

The IEA predicted that demand for OPEC crude, while set to recover sharply, will remain slightly below 2019 levels next year.