OPEC cuts world oil demand forecast for 2021

OPEC lowered its world oil demand forecast for 2021 on Thursday, citing weaker demand in major consumers China and India, and an expected hit from high energy prices.

In a monthly report, the cartel of major oil producers cut its forecast by around 160,000 barrels per day.

Global demand for 2021 is now forecast to reach 96.4 million barrels per day.

“Revisions were mainly to account for slower than anticipated demand from China and India” in the third quarter, the report said.

“In addition, a slowdown in the pace of recovery in 4Q21 (fourth quarter) is now assumed due to elevated energy prices,” it said.

China’s economy slowed more than expected in the third quarter as a crackdown on the property sector and a looming energy crisis began to bite.

OPEC’s report said India’s recovery was “still challenged by the lingering effects of the recent Covid-19 wave”.

OPEC expects world oil demand to rise to 100.6 million barrels per day in 2022, 500,000 more barrels per days than before the pandemic in 2019.