OPEC sees rising oil demand as it plans to open taps

accreditation
0:00
play article
Subscribers can listen to this article
Cabinet has approved a plan to establish a single National Petroleum Company.
Cabinet has approved a plan to establish a single National Petroleum Company.
Getty Images

OPEC upgraded its expectations for global oil demand growth in 2021 Tuesday on expectations of a growth rebound, as the oil-producing countries' organisation plans to lift output in the months ahead.

The monthly report's forecast of a year-on-year increase by six million barrels per day (bpd) was slightly higher than a March prediction, which had already been upgraded.

Such an increase would push global demand to 96.5 million bpd in 2021 after last year's tumble due to coronavirus restrictions.

"Oil demand in the second half of 2021 is projected to be positively impacted by a stronger economic rebound than assumed last month, supported by stimulus programmes and a further easing of Covid-19 lockdown measures," OPEC said.

Further cause for optimism later this year came from "an acceleration in the vaccination rollout, largely in the OECD region" - although many developed economies' performance in the first half has proven sluggish.

Convened under the OPEC+ alliance, which also includes Russia and others, oil producers decided in April to gradually roll back output cuts initially made to shore up prices.

The move was motivated by rising optimism as coronavirus vaccination campaigns picked up steam.

OPEC's own output grew by 0.2 million bpd last month, to just over 25 million, according to indirect sources cited in the report.

Most of the growth came from a boost to Iranian production.

While Iran remains far short of output levels seen several years ago, it is in talks in Vienna to save an international deal under which the US agreed to lift some sanctions in exchange for curbs on Tehran's nuclear programme.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.35
-0.0%
Rand - Pound
19.81
-0.0%
Rand - Euro
17.08
-0.0%
Rand - Aus dollar
10.76
-0.0%
Rand - Yen
0.13
-0.0%
Gold
1,764.62
0.0%
Silver
25.81
0.0%
Palladium
2,467.49
0.0%
Platinum
1,038.50
0.0%
Brent Crude
73.51
+0.6%
Top 40
59,504
-1.5%
All Share
65,635
-1.4%
Resource 10
60,958
-1.7%
Industrial 25
87,956
-1.3%
Financial 15
12,995
-2.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Should government have assigned a majority shareholding in SAA to the private sector?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, It's a good decision
62% - 116 votes
Not a good move
11% - 20 votes
Too early to tell
27% - 51 votes
Vote