OPEC expects global oil demand to reach pre-pandemic level in 2022

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The Organization of the Petroleum Exporting Countries (OPEC) expects global oil demand to return to the pre-pandemic level in 2022, noting that the output saw a monthly increase in June.

Demand for oil is likely to 6 million barrels per day (bpd) to 96.6 million bpd this year, OPEC added in its monthly report issued today, July 15.

Moreover, global demand for oil next year is expected to rise by 3.3 million bpd to 99.86 million bpd, a level that is very close to the average demand of 99.98 million bpd in 2019.

"In 2022, healthy expectations for global economic growth in addition to improved containment of COVID-19 through the acceleration of vaccination programmes, effective treatment and natural immunisation, particularly in emerging and developing countries, along with frequent testing procedures, are assumed to spur consumption of oil next year to comparable pre-pandemic levels," OPEC added in the report.

The non-OPEC is expected to grow by 0.81 million bpd to an average of 63.8 million bpd this year, a decrease of 0.03 million bpd, compared to the previous estimates.

Meanwhile, OPEC affirmed its previous forecasts that the world economic growth was expected to slow to 4.1% next year from 5.5% in 2021.

Opec crude production reached 26.03 million bpd in June, up by 586,000 bpd from May.