OPEC lowers forecast for global oil demand growth in Q4 2021

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The Organization of the Petroleum Exporting Countries (OPEC) lowered its estimates for global oil demand growth in Q4 2021 due to the repercussions of the COVID-19.

Global oil demand is seen to grow by 6 million barrels per day (bpd) this year to 96.7 million bpd - the same level as last month’s forecast - and demand is predicted to increase by 4.2 million bpd next year - 0.9 million bpd higher than previous forecasts, OPEC said in a report.

Oil demand levels in the third quarter proved resilient, supported by increased mobility and travel activities, particularly in OECD countries, the report said.

At the same time, however, the report warned that increased fears of Delta variant obscured demand expectations in Q4 this year.

Therefore, OPEC lowered its forecast for global crude demand levels in Q4 by 110,000 bpd to 99.70 million bpd.

On the other hand, the oil bloc cut its forecast for non-OPEC supply growth in 2021 by about 0.17 million bpd due to Hurricane Ida in the Gulf of Mexico.

OPEC has maintained its forecast for non-OPEC supply next year, and sees it growing by 2.9 million bpd at 66.8 million bpd.

The organization also kept its forecast for global economic growth for the current year and 2022 unchanged at 5.6% and 4.2%, respectively.

Data indicated that OPEC production increased by about 151,000 bpd in August.