In the monthly oil market report, OPEC revised down Q4 oil demand forecasts to average 99.70m bpd, down 110k bpd from last months’ projections. For 2022, Overall, global oil demand would rise by 5.96m bpd in the whole of 2021. Demand growth forecasts for 2022 was revised from 3.28m bpd to 4.1m bpd.
It said the “increased risk of COVID-19 cases primarily fueled by the Delta variant is clouding oil demand prospects going into the final quarter of the year.” As a result, “second-half 2021 oil demand has been adjusted slightly lower, partially delaying the oil demand recovery into first-half 2022.”
“The pace of recovery in oil demand is now assumed to be stronger and mostly taking place in 2022,” OPEC said. “As vaccination rates rise, the COVID-19 pandemic is expected to be better managed and economic activities and mobility will firmly return to pre-COVID-19 levels.”
