Global Oil Demand Set for Record Rise in 2021

Global Oil Demand Set for Record Rise in 2021Global Oil Demand Set for Record Rise in 2021

Global oil demand will soar by a record 7 million barrels per day in 2021 as the global economy recovers from the coronavirus pandemic but will remain below 2019 levels, OPEC said in its monthly report.
It was the first report in which OPEC assessed oil markets next year. It said the forecast assumed no further downside risks materialized in 2021 such as US-China trade tensions, high debt levels or a second wave of coronavirus infections, Reuters reported.
“This assumes that Covid-19 is contained, especially in major economies, allowing for recovery in private household consumption and investment, supported by the massive stimulus measures undertaken to combat the pandemic,” OPEC said.
Oil prices collapsed this year after global demand fell by a third when governments imposed lockdowns to stop the spread of the virus.
OPEC said in 2020 oil demand will drop by 8.95 million bpd, slightly less than in last month’s report. In 2021 it expects efficiency gains and remote working to cap demand growth, keeping demand below record 2019 levels.
OPEC expects to cover the lion’s share of the massive projected demand spike in 2021 with demand for its crude rising by 6 million to 29.8 million bpd.
From May 2020, OPEC and allies led by Russia have been cutting output by nearly 10 million bpd, or a tenth of global demand, to help prop up oil prices.

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