OPEC raises global oil demand forecast for 2021

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OPEC raised its forecasts for global oil demand this year, expecting the recovery to begin in the second half of 2021 with the fading repercussions of the COVID-19 pandemic.

In its latest monthly oil market report, the group forecast global oil demand reaching 96.3 million barrel per day (bpd) in 2021, up 5.9 million bpd, compared to its previous estimates of 96.05 million bpd.

Meanwhile, this year’s demand growth will not be able to compensate for the major shortfall from 2020, as mobility is forecast to remain impaired throughout 2021.

The report also expects oil supply from countries outside OPEC to grow by 1 million bpd to 63.8 million bpd.

Elsewhere, OPEC’s output fell by 647,000 bpd in February to 24.84 million bpd.

The group decided last month to keep output for April unchanged at current levels. Saudi Arabia also pledged to continue with voluntary cut until the end of next month.

In addition, OPEC raised its projections for global economic growth to 5.1% from 4.8%, despite the pandemic's economic fallout likely to continue in the first half of the year.