The Organization of the Petroleum Exporting Countries (OPEC) predicts that global oil demand will register a historic high growth of seven million barrels per day (b/d) in 2021, although it will remain far below the pre-COVID-19 level.
While the oil market is still ravaged by the COVID-19 crisis, gradual stabilization is expected to begin in the second quarter of 2020, prompting cautious forecasts of renewed growth in 2021, according to OPEC’s monthly report published on Tuesday.
The Organization for Economic Cooperation and Development (OECD) and the non-OECD oil producers will contribute around 3.5 million b/d to growth separately in 2021, it said.
Spot crude oil prices continued to rise in June for the second consecutive month, driven by a drop in global oil surplus, further improvements in oil market fundamentals, as well as expectations that the oil market would tighten further in the second quarter of this year, the report said.
OPEC forecasts a 4.7-percent global economic growth in 2021 following a contraction of 3.7 percent this year, assuming that COVID-19 is contained, especially in major economies.