Global oil demand is expected to increase by around 6% to an average of 96.5 million barrels per day (bpd) in 2021, the Organization of Petroleum Exporting Countries (OPEC) said in its Monthly Oil Market Report on Tuesday.
Slower than anticipated demand in the Organization for Economic Co-operation and Development (OECD) Americas during the first quarter of the year, together with the resurgence of COVID-19 cases in India and Brazil, resulted in a downward revision in the oil demand forecast for the first half of the year, the group said.
“However, positive transportation fuel data from the US, and acceleration in vaccination programs in many regions provides further optimism in the second half of 2021,” the report said.
It added that the assumed return to some degree of normality and improved mobility is also expected to positively affect regions such as the Middle East and Other Asia during the same period.
Demand for OPEC crude in 2021 has been revised up by 200,000 barrels per day (bpd) from the previous month to stand at 27.7 million bpd, which is 5.2 million bpd higher than in 2020.
-OPEC crude oil production rises in April
Global oil production in April decreased by 150,000 bpd compared to the previous month to average 93.06 million bpd, while reflecting a year-on-year fall of 6.45 million bpd.
The report shows that OPEC crude oil production increased by 30,000 bpd month-over-month to an average of 25.08 million bpd, while the share of OPEC crude out of total global production rose to 27% in April, marking a 0.1% decrease compared with the previous month.
Crude oil output increased mainly in Nigeria, Iran and Saudi Arabia, while production decreased primarily in Venezuela.
Raising its monthly crude oil production the most in April, Nigeria’s output increased by 75,000 bpd to reach 1.5 million bpd.
Iran, which has been exempted from OPEC's production cuts, also boosted its production by 73,000 bpd to 2.4 million bpd.
The production of the de facto leader of the OPEC group, Saudi Arabia, rose by 34,000 bpd to 8.1 million bpd, mainly due to returning output after the OPEC+ decision to gradually phase out the country’s voluntary cuts over the last three months.
Meanwhile, Venezuela, the other OPEC country that has had a production cut exemption, has seen output decline in April by 81,000 bpd to 445,000 bpd.
Non-OPEC liquids production in April decreased by 180,000 bpd compared with the previous month to an average of 68 million bpd.
By Sibel Morrow