OPEC hikes demand growth forecast, first time in 2021

London (Quantum Commodity Intelligence) – Opec increased its 2021 global oil demand forecast for the first time this year on Tuesday, outlining a slightly more optimist prognosis for the demand-recovery scenario.

"Oil demand in the 2H 2021 is projected to be positively impacted by a stronger economic rebound than assumed last month, supported by stimulus programs and a further easing of COVID-19 lockdown measures, amid an acceleration in the vaccination rollout, largely in the OECD region,' said OPEC in its Monthly Oil Market Report (MOMR), released Tuesday.

The producer group said it expects demand to rise by 5.95 million barrels in 2021, up 70,000 bpd from its forecast last month.

OPEC expects consumption to average 96.46 million b/d this year, citing economic stimulus programs and a further easing of Covid-19 lockdown measures.

Meanwhile, global oil demand contraction in 2020 was revised lower, by about 100,000 b/d compared to last month's MOMR; now showing a contraction of about 9.5 mbd y-o-y, with total world oil demand at 90.5 mb/d