United Arab Emirates: Oil demand has already increased to 95 million barrels per day
Demand for oil has already increased to 95 million barrels per day (bpd), and the market is rebalancing, according to Abu Dhabi National Oil Company (ADNOC) managing director Sultan Ahmed Al Jaber.
ADNOC pumps almost all of the oil from one of OPEC’s largest producers, the United Arab Emirates (UAE).
Speaking at the Columbia Global Energy Virtual Conference Mountain peak, also noted Al Jaber – as wore it Reuters– that investment in oil and gas has declined over the past five years as companies stick to capital discipline since the previous oil price collapse and industry downturn in 2015-16.
In its latest monthly oil market report, OPEC forecasts global oil demand at 94.79 million bpd in the second quarter of this year, after downgrading estimates to 300,000 bpd from its estimate. April, due to weaker than expected demand in North America in the first quarter and the resurgence of COVID in India and Brazil.
However, the organization raised its oil demand outlook for the third and fourth quarters of 2021 by 150,000 b / d and 290,000 b / d, respectively. Third-quarter demand is expected to average 97.90 million bpd, and fourth-quarter demand is expected to increase further to 99.74 million bpd, according to the latest OPEC report. The anticipated higher demand in the second half of this year is the result of positive fuel data from the United States, while “the acceleration of vaccination programs in many regions gives cause for optimism,” said OPEC.
Overall, OPEC is optimistic that accelerating vaccination programs and increasing demand for fuel will increase average global oil demand by 5.95 million barrels per day in 2021 compared to to 2020.
Earlier this week, Russian Deputy Prime Minister Alexander Novak said the oil market is currently fairly balanced, with demand slightly exceeding supply.
Last year’s excess oil stocks were all but depleted, and a strong rebound in demand in the second half of this year could lead to even larger inventory drawdowns, the International Energy Agency said ( IEA) in its May report, keeping an optimistic forecast for global oil demand despite a weaker than expected first half of 2021.
By Charles Kennedy for Oil chauffage
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