By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has raised its 2021 oil demand growth forecast in the hopes that the coronavirus impact wanes on the global economy.
In the latest forecast contained in its monthly report, the cartel noted that demand will rise by 5.95 million barrels per day in 2021, or 6.6 per cent, up 70,000 barrels per day from last month.
The raise in its forecast for growth in world oil demand this year is banking on hopes that the pandemic will subside, providing help for the group and its allies in their efforts to support the market.
However, OPEC lowered its forecast for the second quarter.
“As the spread and intensity of the COVID-19 pandemic are expected to subside with the ongoing rollout of vaccination programmes, social distancing requirements and travel limitations are likely to be scaled back, offering increased mobility,” OPEC said in the report.
The upward revision marks a change of tone from previous months, in which OPEC has lowered demand forecasts due to continued lockdowns.
A further recovery could bolster the case for OPEC and its allies, known as OPEC+, to unwind more of last year’s record oil output cuts.
Prices have risen to pre-pandemic highs above $70 this year, boosted by hopes of economic recovery and OPEC+ supply restraint and prices reacted positively to the news.
Business Post gathers that Brent was trading closer to $64 a barrel while the US West Texas Intermediate (WTI) is currently at $60 per barrel.
OPEC raised its forecast of 2021 world economic growth to 5.4 per cent from 5.1 per cent assuming the impact of the pandemic is “largely contained” by the beginning of the second half of the year.
Earlier this month, OPEC+ agreed to gradually ease oil output cuts from May, after the new US administration called on Saudi Arabia to keep energy affordable for consumers.
The report also showed higher OPEC oil output already as Iran, exempt from making voluntary cuts due to US sanctions, pumped more in March, driving a 200,000 barrels per day rise in the group’s output to 25.04 million barrels per day.
While Iran remains far short of output levels seen several years ago, it is in talks with the Vienna-based organisation to save an international deal under which the US agreed to lift some sanctions in exchange for curbs on Tehran’s nuclear programme.
The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.
Like Our Facebook Page
Latest News on Business Post
- FG Launches System to Register Phones to Tackle Theft May 13, 2021
- Premier League Agrees £5bn TV Broadcast Deal Extension May 13, 2021
- Firm Unveils Insurance Cover for Tricycle Riders May 13, 2021
- Insecurity: Buhari Begs Nigerians for More Understanding May 13, 2021
- HP Extends Digital Partner Programme to Global Retailers May 13, 2021
- DMO, Investors Prepare for N150bn Bond Sale May 19 May 13, 2021
- Eid al-Fitr: Akande-Sadipe Tasks Muslims on Peace, Love May 13, 2021
- Companies Pay N392.8bn Income Tax to Government in Q1 2021 May 13, 2021
- Bitcoin Slides as Elon Musk’s Tesla Suspends Acceptance for Purchase May 13, 2021
- Brent Hits $69 Amidst Positive Economic, Demand Forecasts May 13, 2021
Economy5 years ago
Kwara Disburses N1.7b For Projects
Technology5 months ago
How To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN
Feature/OPED1 year ago
Davos was Different this year
Economy3 years ago
FAAC: FG, States, LGs Share N655.18b in January
Economy2 months ago
MBA Forex Blames CBN for Inability to Return Investors’ Funds
Banking3 years ago
Sort Codes of GTBank Branches in Nigeria
General2 years ago
Ikeja Electric Explains How to Get Prepaid Metres via MAP
Feature/OPED2 months ago
COVID and the Growth of Technology in Nigeria