OPEC + committee expects slowdown in oil demand in 2021

The Organization of Petroleum Exporting Countries (OPEC) and its allies expects a further slowdown in crude demand in 2021, with the expected growth of 6.2 million barrels per day (bpd), a downward revision of 0.3 million bpd, Reuters reported citing a confidential document from OPEC+ Joint Technical Committee.

It also expects a potential surplus in oil supplies of 1.5 million bpd in 2021, amid weak demand and potentially high supply from independent producers, according to the worst-case scenario.

OECD commercial oil stocks will decline to stand at 73 million barrels above the five-year average in 2021 if the oil cuts were extended to end of March 2021, according to one scenario.

The other scenario would see a decline in the OECD stocks to 21 million barrels above the five-year average next year, if the reduction pact was extended through June, the report said.