15.07.202014:44 Forex Analysis & Reviews: OPEC oil demand to exceed pre-crisis levels next year

According to the OPEC monthly report, in 2021 oil demand will rise by 25%. Oil production will hit 29.8 million barrels per day. This is a result of the global economic recovery after the coronavirus pandemic. It will highly affect a rise in demand.

However, the US oil production in 2021 will be negligible. Moreover, it will drop by 7.4% this year.

As it is already known, OPEC + countries concluded a deal to cut oil production. This, in turn, made it possible to reduce global stocks and boost prices. The cartel noted that they managed to fulfill the deal obligations in June by more than 100%.

It is estimated that oil demand in 2021 will advance by 7.7% to 97.72 million barrels per day. However, a jump in demand directly depends on the revival of the tourism industry. Even if the predictions come true, the level of demand will still be lower than in 2018 and 2019.

At the same time, oil production outside OPEC may decrease by 3.26 million bpd this year, and next year it may grow by only 0.92 million bpd.

A week earlier, the International Energy Agency published a forecast for oil production, which was not as optimistic as the OPEC predictions.

Today, an online meeting of OPEC + was held. The countries discussed a decision to soften oil production from 9.6 million barrels per day to 7.7 million barrels per day starting from August.