OPEC: Global oil demand is expected to return to pre-pandemic levels by 2022

OPEC stands by its forecast for a strong recovery in world oil demand in the second half of 2021 and expects oil use to increase further in 2022, close to the pre-pandemic pace, mainly growth in China and India
.

OPEC said Thursday in its monthly report that demand will rise 3.
4 percent to 99.
86 million b/d next year, averaging more than 100 million b/d
in the second half of 2022.

According to OPEC, oil demand averaged 99.
98 million b/d in 2019, meaning oil demand is expected to return to pre-pandemic levels
by 2022.

"In 2022, in addition to improving the containment of COVID-19 through accelerated vaccination programs, effective treatment and natural immunity, healthy expectations for global economic growth, especially in emerging and developing countries, as well as frequent testing procedures, are seen as spurring consumption next year's oil production to comparable pre-pandemic levels," OPEC said
in the report.

The report reflects OPEC's confidence that world demand will recover strongly from the pandemic, allowing the group and its allies to further ease the record supply constraints
of 2020.
Some analysts believe oil demand peaked
in 2019.

OPEC also maintained its forecast
that demand will grow by 5.
95 million b/d in 2021.

Before the OPEC report, oil was trading just below $
74 a barrel.
With the help of OPEC and its ally (OPEC+) production cuts, prices have risen by more than
40% so far this year.

OPEC+ agreed in April to gradually ease production cuts from May to July, but has yet to decide on plans beyond July 2021 after a dispute between Saudi Arabia and the United Arab Emirates broke off negotiations
.
Reuters reported on Wednesday that the two sides had reached a compromise
.

Thursday's report showed an increase in OPEC oil production, reflecting a decision to
increase production.
OPEC said production rose by 590,000 b/d in June to 26.
03 million b/d
.