OPEC sees oil demand soaring in 2021 but still below 2019

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In its first detailed assessment of the market in 2021, the OPEC said the forecast assumed no further downside risks materialized in 2021 such as US-China trade tensions, high debt levels or the second wave of coronavirus infections. — Courtesy photo
In its first detailed assessment of the market in 2021, the OPEC said the forecast assumed no further downside risks materialized in 2021 such as US-China trade tensions, high debt levels or the second wave of coronavirus infections. — Courtesy photo

LONDON — Global oil demand will rebound sharply in 2021, rising by a record 7 million barrels per day (bpd) as the global economy recovers from the coronavirus crisis but will remain below 2019 levels, the Organization of the Petroleum Exporting Countries said in its monthly report.

In its first detailed assessment of the market in 2021, the OPEC said the forecast assumed no further downside risks materialized in 2021 such as US-China trade tensions, high debt levels or the second wave of coronavirus infections.

"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," Reuters quoted OPEC's statement as saying.

But the expected demand is below the levels seen last year or in 2018, and the growth hinges on the containment of the coronavirus and a recovery in the hospitality and travel sectors.

OPEC said in 2020 oil demand would 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 bpd to reach 29.8 million bpd. — Agencies


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