The pandemic remains an uncertainty for oil, according to OPEC

OPEC maintained its forecasts on world oil demand in 2021 and next year on Monday, while highlighting the “uncertainty” that the covid-19 pandemic continues to cause in the market.

“The expected recovery in 2021 has been surrounded by challenges, some of which are expected to continue into the next year,” the Organization of the Petroleum Exporting Countries (OPEC) wrote in its monthly report.

“The expected equilibrium of the market continues to be determined by the evolution of the covid-19 pandemic, a key factor of uncertainty,” said the cartel.

However, the forecast for world demand has been confirmed so far.

For this year, OPEC continues to estimate that the rebound in crude demand should reach 5.7 million barrels per day (mbd) to reach a total world demand of 96.6 mbd.

By 2022, demand is projected to continue increasing by 4.2 mbd.

“The impact of the new omicron variant is expected to be moderate and in the short term, as the world is better equipped to deal with covid-19 and the difficulties it causes,” the authors note.

The OPEC countries and their allies in the so-called OPEC + agreement recently decided to continue their policy of gradually increasing production.

OPEC increased its production by 285,000 barrels a day in November compared to October, according to secondary (indirect) sources cited in the report. (I)