The Organisation of Petroleum Exporting Countries, OPEC, has predicted that global demand will rise by 5.8 million barrels per day, mb/d in 2021, as the world continues its battle against the Coronavirus pandemic, which culminated in lockdown, and low demand for oil.

In its report obtained by The Daily, www.thedaily-ng.com, it stated: “For 2021, oil demand is now anticipated to increase by 5.8 mb/d, revised down by around 0.1 mb/d from last month’s projection, to average 96.1 mb/d.

“Revisions are concentrated in the OECD region. Extended lockdowns and the re-introduction of partial lockdowns in a number of countries have resulted in downward revisions to 1H21 projections. At the same time, positive developments on the economic front, supported by massive stimulus programmes, are expected encourage demand in various sectors in 2H21.”

The organization also predicted an improvement in the global economic recovery, stressing, “Additional stimulus measures in the US and accelerating recovery in Asian economies are expected to lift the 2021 forecast to 4.8%, compared to the previous month’s forecast of 4.4%. The US officially reported a contraction of 3.5% for 2020. US economic growth in 2021 is now revised up to 4.2%, from the 3.4% expected in last month’s report.

“The Euro-zone’s GDP growth forecast for 2020 was also revised up by 0.4 pp to -6.8%, while the 2021 growth forecast was lifted to 4.1% from 3.7%. Japan’s economic forecast remained at -5.2% for 2020 and was lifted by 0.1 pp to 2.9% for 2021. China’s economic growth was officially reported at 2.3% for 2020 and the forecast for 2021 was lifted to 7.4% from 6.9% in 2021.”

It added: “The forecast for India was revised up to -8.2% from -9.0% for 2020 and to 7.5% from 6.8% for 2021. Brazil’s 2020 forecast was revised up to -4.9% from -5.2% and to 2.9% from 2.4% for 2021. Russia’s economic growth forecast in 2020 was officially reported at -3.1%, while the growth forecast for 2021 was improved from 2.9% to 3.0%.”