World oil demand growth in 2021 is 5.7 mb/d – OPEC

image

BY AGENCY REPORT, DECEMBER 2, 2021 | 12:55 PM


The Organisation of the Petroleum Exporting Countries (OPEC) says World oil demand growth in 2021 now stands at 5.7 mb/d.

According to OPEC, this reflects slower than anticipated demand from China and India in third quarter of 2021 (3Q21).

Mr Mohammad Barkindo, OPEC Secretary General, disclosed this on Wednesday in his remark at the 182nd OPEC video conference.

Barkindo noted that global oil demand was estimated to reach 96.4 mb/d in 2021 while world total demand in 2022 was estimated to reach 100.6 mb/d, around 0.56 mb/d above 2019 levels.

“Non-OPEC liquids supply is expected to grow by 0.7 mb/d in 2021, to average 63.6 mb/d.

“The main growth drivers of 2021 are Canada, Russia, China, Norway, Brazil and Guyana.

“The forecast for non-OPEC liquids supply growth in 2022 is 3.0 mb/d, to average 66.7 mb/d. Russia and the U.S. contribute increments of 1.0 mb/d and 0.9 mb/d, respectively.

“Turning to stocks, Organisation of Economic Cooperation and Development (OECD) commercial stocks stand at 2,773 mb, which is 174 mb below the 2015-2019 average with crude accounting for 148 mb and products 26 mb of this.

In terms of days of forward cover, he disclosed that OECD commercial stocks in October stood at 61.6 days, 0.7 days lower than the average of 2015-2019.

Moreover, he underscored the need to consider the market implications of last week’s announcement of the possible coordinated release of 70 million barrels of oil from the strategic reserves of several consuming countries.

He noted that the implications of such uncertainties for excess supply in first to second quarter of 2022 (1Q-2Q2022) should be carefully monitored.

He listed future of monetary policies, inflationary pressures, possible reintroduction of lockdowns, vaccine uptake rates, vaccine-resistance of the Omicron variant of COVID-19 and supply-chain bottlenecks as some of the uncertainties clouding the picture.

According to him, these uncertainties and implications on the global oil demand and supply balance are analysed in a scenario analysis as reflected in the Economic Commission Board (ECB) report.

In an overview of market developments, as discussed at the 136th Meeting of the ECB, he recalled that over 55 per cent of the global population has received at least one vaccine against the coronavirus.

According to official statistics, over 262 million people have been sickened and there have been over 5.2 million fatalities.

The global economic growth forecasts for both 2021 and 2022 stand at 5.6 per cent and 4.2 per cent, respectively.

According to him, while a multitude of challenges to the economic recovery remain, the world economy continues improving, albeit at disparate speeds among many regions.

He said that the emergence of the Omicron variant of COVID-19 and the reintroduction of lockdowns in many regions of the world constitute the main public-health related uncertainties.

NAN


Appeal for support


Conflict Reporting is dangerous and risky. Our reporters constantly face life-threatening challenges, sometimes surviving ambushes, kidnap attempts and attacks by the whiskers as they travel and go into communities to get authentic and firsthand information. But we dare it every day, nonetheless, in order to keep you informed of the true situation of the victims, the trends in the conflicts and ultimately help in peace building processes. But these come at huge cost to us. We are therefore appealing to you to help our cause by donating to us through any of the following means. You can also donate working tools, which are even more primary to our work. We thank you sincerely as you help our cause.

Alternatively, you can also email us on info@yen.ng or message us
via +234 803 931 7767