OPEC+ monitoring raises forecast for oil market deficit in 2021

The balance of supply and demand in the oil market in 2021 will develop towards a deficit of the latter in the amount of 1.2 million barrels per day, not 0.8 million barrels per day, as previously expected, according to the report, which will be considered by the OPEC + ministerial monitoring committee on Tuesday, Report informs.

The forecast for global demand growth has also been improved; from 5.9 million barrels per day last month to 6 million barrels per day. Demand is expected to be 96.5 million barrels per day. In total, OPEC + is considering two scenarios for the development of the situation on the oil market, the baseline and the alternative, in which the influence of negative factors is stronger. But even in this case, a surplus in the oil market is not expected this year, and demand will increase by at least 4.6 million barrels per day.

In total, OPEC+ countries have managed to reduce the oil supply in the market by 2.75 billion barrels since May 2020, the report says. However, if all countries complied with the agreement by 100%, they would be able to reduce the supply by 2.88 billion barrels.

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