Freight from Saudi ports up 5% in January
LONDON: OPEC said on Thursday that its already strong forecast for global oil demand in 2022 showed upside potential, as the global economy shows a strong recovery from the coronavirus pandemic and sectors like tourism in benefit.
The optimistic view from the Organization of the Petroleum Exporting Countries comes as oil prices hit their highest level since 2014. Tighter supply has given impetus to the recovery, and the report from the OPEC also showed that the group exceeded the promise to increase oil production in January.
In a monthly report, the Organization of the Petroleum Exporting Countries said it expected global oil demand to rise by 4.15 million barrels a day this year, unchanged from its forecast for the month. last.
“The upside potential of the forecast prevails, based on an observed strong economic recovery underway, with GDP already reaching pre-pandemic levels,” the OPEC report said in a commentary on the outlook for the request for 2022.
“While most global economies are expected to strengthen, the near-term outlook for global oil demand is certainly on the upside,” OPEC said in a separate commentary on 2022 demand.
Global consumption is expected to top the 100 million bpd mark in the third quarter, in line with last month’s forecast. On an annual basis according to OPEC, the world last used more than 100 million bpd of oil in 2019.
OPEC and its allies, known as OPEC+, are phasing out record production cuts put in place last year. At its last meeting, the group agreed to increase monthly production by 400,000 bpd in March.
The report showed that OPEC’s production in January only increased by 64,000 bpd to 27.98 million bpd, which is below the 254,000 bpd increase OPEC authorized under of the agreement.