The Organisation for Petroleum Exporting Countries is projecting a 6.56 per cent growth in global crude oil demand to 95.89 million barrels per day in 2021, compared to 89.99 million barrels per day in 2020.
The organisation disclosed this in its Monthly Oil Market Report for December, released on its website.
It observed that the 2021 world oil demand would be 0.38 per cent lower than the 96.26 million barrels per day earlier projected for 2021.
It said: “For 2021, world oil demand growth is revised lower by 0.35 million barrels per day (mb/d) to growth of 5.90 mb/d.
“This is due to the uncertainty surrounding the impact of COVID-19 and the labour market on the Organisation for Economic Co-operation and Development( OECD) transportation fuel outlook for the first half of 2021.
“Petrochemical feedstock and industrial fuels are forecast to gain momentum on the back of improving economic activities, with total oil demand projected to reach 96.89 mb/d in 2021.”
OPEC also revised downward, global crude oil demand for 2020, by 9.77 million barrels per day, blaming the decline on low demand for transportation fuels.
It added: “World oil demand for 2020 is expected to decline by 9.77 mb/d, marginally lower than in last month’s assessment.
“Weaker-than-expected data in the OECD in third quarter 2020, mainly due to lower transportation fuel demand in the U.S. and OECD countries, led to a downward revision of around 0.18 mb/d for the OECD group.
“However, this is mostly offset by an upward revision for the non-OECD, by 0.16 mb/d.
“Better-than-expected oil demand in China, amid a steady recovery across various economic sectors, and improving oil demand from India, supports this upward revision. Total oil demand is estimated to reach 89.99 mb/d in 2020.”
The report further noted that the OPEC also revised its global economic growth projections, stating that the global economy would contract by 4.2 per cent year-on-year, compared to its earlier projection of a 4.3 per cent contraction y-o-y.
It said: “Global economic growth is revised up slightly for 2020, after a better-than expected performance in third quarter 2020, now showing a contraction of 4.2 per cent, y-o-y, compared to the previous month’s forecast of -4.3 per cent.
“While the 2021 forecast remains at 4.4 per cent, recent positive news about faster-than anticipated vaccination programmes in major economies provides potential upside for next year’s growth forecast.
“US economic growth remains unchanged at -3.6 per cent for 2020 and at 3.4 per cent for 2021.
“The Euro-zone forecast is revised down to -7.3 per cent, while the 2021 growth forecast remains at 3.7 per cent. Japan’s economic forecast is revised up to -5.2 per cent for 2020, but remains at 2.8 per cent for 2021.”
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