OPEC has projected a rise in global oil demand to 90.5 million barrels per day in 2021, an increase of 6 million barrels per day, unchanged from last month's estimates. OPEC mentioned in its monthly report that global oil demand data for the first half of 2021 will be revised due to the increase in COVID-19 cases in India and Brazil. Key highlights from the report include:
- Expectations of a 700,000 barrels per day increase in oil supplies from outside OPEC, reaching an average of 63.6 million barrels per day in 2021.
- An increase in demand for OPEC oil by 200,000 barrels per day, reaching 27.7 million barrels per day in 2021, which is over 5 million barrels per day higher than in 2020.
- A reduction in expectations for oil supplies from outside OPEC by 230,000 barrels per day for the second quarter to 700,000 due to the impact of a frost wave on U.S. production in Texas.
- Negative impact on the recovery of the Indian economy in the second quarter, but with expectations of improved momentum in the second half of the year.
- Positive data for transportation fuel from the United States and the acceleration of vaccination efforts provide more optimism for a return to normalcy in the second half of 2021.
