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OPEC expects global oil demand to grow by 6 mln bpd in 2021

Thus, the forecast for the growth of global demand has been increased by 100,000 bpd compared to the March report

MOSCOW, April 13. /TASS/. Global oil demand in 2021 will grow by 6 mln barrels per day (bpd) to about 96.5 mln bpd due to the global economic recovery and vaccinations, according to the April report from OPEC.

Thus, the forecast for the growth of global demand has been increased by 100,000 bpd compared to the March report.

OPEC noted that a more intensive economic recovery, vaccination of the population, and lifting restrictive measures in OECD countries will have a positive impact on global oil demand. The organization expects the main growth in consumption is expected in the Q2 and the Q3 of 2021, and demand will grow in annual terms by 12 mln and 6.5 mln bpd, respectively. Gasoline is forecast to be the key driver of the growth in global oil demand with the start of the summer season, the report said.

Meanwhile, OPEC countries in March 2021 increased oil production by 201,000 barrels per day (bpd) against the level of February to 25.04 mln bpd, according to the report. At the same time, the deal to reduce oil production by the countries of the organization was fulfilled by 124% of the plan against 122% a month earlier.

The overfulfillment of the deal’s quota was largely ensured by the voluntary reduction of 1 mln bpd by Saudi Arabia, OPEC’s largest oil producer. Thus, in March its production remained at the level of 8.09 mln bpd, which is 33,000 bpd than in February.

Out of 13 OPEC members, 10 participate in the OPEC+ agreement to cut oil production, as Iran, Libya, and Venezuela are exempt from restrictions. In March, the production of the deal’s participants amounted to only 21.017 mln bpd against 22.12 mln bpd as stipulated by the terms.

Most of all, oil production in March increased in Iran, which, due to the sanctions, was released from obligations to reduce oil production - by 137,000 bpd to 2.3 mln bpd. Output in March also grew in Angola - by 40,000 bpd to 1.16 mln bpd and Iraq - by 23,000 bpd to 3.9 mln bpd.

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