Global oil demand is expected to increase by 6.56 per cent or by 5.9 million barrels per day (bpd) to an average of 95.91 million bpd this year, the Organization of Petroleum Exporting Countries (OPEC) said in its report yesterday.
The report stated that oil production decreased primarily due to production decline in some countries. Nigeria’s production fell by 28,000 bpd to 1.42 million bpd. Congo and Angola also saw dip in oil production while oil output increased mainly in Libya, Iraq and the United Arab Emirates (UAE).
“The US economy is anticipated to recover relatively well this year, supported by the availability of viable vaccines in combination with well-targeted stimulus measures, which in turn will support oil demand going forward,” the report stated.
Global oil demand in 2020, however, is estimated to have contracted by 9.75 million bpd, or 9.8per cent to reach 90 million bpd, according to the OPEC Monthly Oil Market Report.
The report said, in Europe, 2021 projections assume a healthy recovery in economic activities including industrial production, an improving labor market and higher vehicle sales than in 2020.
“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the report said.
In OECD Asia Pacific, oil demand is projected to grow for the first time in seven years but will remain below 2019 levels. “A return of some of the consumption lost in 2020 in addition to recovering economic activities are projected to support a demand increase in 2021… Demand growth is projected to be driven by China, followed by India and Other Asia,” said the report.
Demand for OPEC crude in 2021 remained unchanged from the previous month’s report to stand at 27.2 million bpd, which is 5 million bpd higher than in 2020.
Global oil production in December increased by 0.58 million bpd compared to the previous month to average 92.93 million bpd, showing a year-on-year fall of 8.23 million bpd.
In December, OPEC crude oil production rose by 0.71 million bpd month-over-month to average 25.11 million bpd, according to the report.
As a result, the share of OPEC crude out of total global production rose to 27.3per dent in December, marking a 0.1per cent increase compared with the previous month.
Exempted from OPEC production cuts, Libya was the country among OPEC members that raised its monthly crude oil production the most in November with an increase of 136,000 bpd to reach 1.224 million bpd.
Non-OPEC liquids production in December increased by 0.30 million bpd compared with the previous month to average 67.57 million bpd.
