OPEC: Strong recovery in world oil demand in 2021

OPEC on Thursday stuck to its forecast for a strong recovery in world oil demand in 2021 and further growth next year, even as concerns about the spread of the Delta coronavirus variant have weighed on prices
.

OPEC also raised its supply forecast for next year from rivals, including U.
S.
shale producers, in its monthly report, which could adversely
affect the group's and allies' efforts to balance markets.

"The global economy continues to recover," OPEC said in the report, "however, many challenges remain, and it is easy to curb this momentum
.
" In particular, COVID-19-related developments need to be closely monitored
.
”

OPEC's view that demand will move away from pandemic-related sentiments contrasts sharply with that of the International Energy Agency, which cut its forecast
on Thursday.
The U.
S.
government's forecast also kept its growth steady in 2021, but downgraded its growth forecast
for 2022.

OPEC said in the report that oil demand will increase by 5.
95 million b/d, or 6.
6 percent, this year, unchanged
from last month's forecast.
OPEC said fuel use would increase by 3.
28 million b/d by 2022, also unchanged
.

After the report, oil was trading above $
71 a barrel.
Fueled by hopes of economic recovery and OPEC+ production cuts, prices briefly rose above their pre-pandemic high of $77 this year, despite concerns about the Delta variant
.

Assuming the impact of the pandemic will be contained, OPEC raised its forecast for world economic growth in 2021 to 5.
6 percent from 5.
5 percent, although it warned of "significant uncertainty.
"
The outlook for 2022 has likewise improved to 4.
2%.

"The COVID-19 pandemic will be the primary factor affecting the pace of recovery in the near future, and the potential emergence of new COVID-19 variants and/or mutations may pose specific risks
," OPEC said.
”