ANL 23.10 Decreased By ▼ -0.70 (-2.94%)
ASC 16.10 Decreased By ▼ -0.30 (-1.83%)
ASL 22.25 Decreased By ▼ -0.40 (-1.77%)
BOP 8.55 Increased By ▲ 0.17 (2.03%)
BYCO 8.96 Increased By ▲ 0.15 (1.7%)
FCCL 18.07 Decreased By ▼ -0.40 (-2.17%)
FFBL 24.45 Decreased By ▼ -0.15 (-0.61%)
FFL 17.90 Decreased By ▼ -0.15 (-0.83%)
FNEL 8.40 Decreased By ▼ -0.14 (-1.64%)
GGGL 22.09 Decreased By ▼ -0.21 (-0.94%)
GGL 43.18 Decreased By ▼ -0.77 (-1.75%)
HUMNL 7.02 Decreased By ▼ -0.15 (-2.09%)
JSCL 20.85 Decreased By ▼ -0.73 (-3.38%)
KAPCO 37.90 Decreased By ▼ -0.20 (-0.52%)
KEL 3.61 Increased By ▲ 0.01 (0.28%)
MDTL 3.00 Decreased By ▼ -0.07 (-2.28%)
MLCF 36.30 Decreased By ▼ -0.18 (-0.49%)
NETSOL 153.30 Decreased By ▼ -4.45 (-2.82%)
PACE 5.98 Decreased By ▼ -0.03 (-0.5%)
PAEL 31.20 Decreased By ▼ -0.45 (-1.42%)
PIBTL 9.36 Decreased By ▼ -0.11 (-1.16%)
POWER 7.90 Decreased By ▼ -0.14 (-1.74%)
PRL 20.85 Decreased By ▼ -0.13 (-0.62%)
PTC 10.40 Increased By ▲ 0.02 (0.19%)
SILK 1.67 Decreased By ▼ -0.02 (-1.18%)
SNGP 43.19 Decreased By ▼ -0.56 (-1.28%)
TELE 22.06 Decreased By ▼ -0.64 (-2.82%)
TRG 173.50 Decreased By ▼ -2.41 (-1.37%)
UNITY 36.20 Decreased By ▼ -0.77 (-2.08%)
WTL 3.25 Decreased By ▼ -0.08 (-2.4%)
BR100 4,979 Decreased By ▼ -47.44 (-0.94%)
BR30 24,460 Decreased By ▼ -312.8 (-1.26%)
KSE100 46,636 Decreased By ▼ -284.38 (-0.61%)
KSE30 18,480 Decreased By ▼ -177.85 (-0.95%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,072
6824hr
Pakistan Cases
1,218,749
2,92824hr
5.08% positivity
Sindh
448,658
Punjab
419,423
Balochistan
32,707
Islamabad
103,720
KPK
170,391
Markets

OPEC sees world oil demand reaching pre-pandemic level in 2022

  • Oil demand seen at 99.86 million bpd in 2022, similar to 2019
Updated 15 Jul 2021

LONDON: OPEC stuck to its forecast for a strong recovery in world oil demand in the rest of 2021 and predicted oil use would rise in 2022 at similar to pre-pandemic rates, led by growth in the United States, China and India.

The Organization of the Petroleum Exporting Countries said in its monthly report on Thursday that demand next year would rise by 3.4% to 99.86 million barrels per day (bpd), and would average more than 100 million bpd in the second half of 2022.

"Solid expectations exist for global economic growth in 2022," OPEC said. "These include improved containment of COVID-19, particularly in emerging and developing countries, which are forecast to spur oil demand to reach pre-pandemic levels in 2022."

Oil prices extend losses on expected supply increase

The report reflects OPEC's confidence that demand will recover robustly from the pandemic, allowing the group and its allies to further ease record supply curbs made in 2020.

Some analysts have said world oil demand may have peaked in 2019.

OPEC's report said 2019 demand averaged 99.98 million bpd.

OPEC also maintained its prediction that demand would grow by 5.95 million bpd in 2021.

OPEC forecast oil demand in China and India would exceed pre-pandemic levels next year. It said the United States would make the biggest contribution to 2022 demand growth, although US oil use would stay just below 2019 levels.

World economic growth was expected to slow to 4.1% next year from 5.5% in 2021, still supported by government stimulus and with the outlook "depending primarily on COVID-19-related developments", OPEC said.

Oil rises as tighter market eyed after OPEC+ cancels meeting

Oil was trading below $74 a barrel after the OPEC report was released. The price has climbed more than 40% this year with the help of supply cuts by OPEC and its allies, a group known as OPEC+.

MORE SUPPLY COMING

The report showed higher output from OPEC and forecast more supplies from rivals in 2022, including US shale producers.

OPEC+ agreed in April to gradually ease output cuts from May to July. Thursday's report showed OPEC production in June rose 590,000 bpd to 26.03 million bpd.

OPEC+ has yet to decide on plans for the rest of 2021 after a dispute between Saudi Arabia and the United Arab Emirates disrupted talks. Reuters reported on Wednesday that the two had reached a compromise.

Oil rises on lower US stockpiles but OPEC warns of 2022 glut

The report forecast a 2.1 million bpd rise in supply from OPEC's rivals in 2022 as higher prices spur investment. OPEC sees output of US shale oil, another term for shale, rising by 500,000 bpd in 2022, after a contraction this year.

The extra barrels will limit growth in demand for OPEC crude next year but OPEC still sees the world needing 28.7 million bpd from its members, up 1.1 million bpd from 2021 and, in theory, allowing higher OPEC production.

Comments

Comments are closed.