“OPEC” issues a report on the situation in the oil market

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“OPEC” stuck to its expectation of a strong recovery in global oil demand in 2021, led by the United States and China, despite the uncertainty caused by the pandemic, and indicated the need for the organization to pump more oil.

The Organization of the Petroleum Exporting Countries, “OPEC”, said in a monthly report that demand will rise by 6.6 percent, or the equivalent of 5.95 million barrels per day, this year. This forecast did not change for the second month in a row.

The forecast stated in the report comes even after a slower recovery than expected in the first half of the year, while warning of “great uncertainty” surrounding the pandemic, such as the possibility of new strains of the Corona virus emerging.

“OPEC” said in the report: “The recovery of the global economy has been delayed due to the resurgence of high cases of Covid-19 and renewed closures in major economies, such as the euro area, Japan and India.”
“Overall, the recovery in global economic growth, and thus oil demand, is expected to gain momentum in the second half of the year,” the organization added.

Although the United States is expected to make the largest contribution to demand growth in 2021, OPEC said that demand in OECD countries will not fully recover from the collapse it witnessed in 2020.





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