OPEC also estimated that among the countries that are not part of the organization, the growth in crude oil supply during 2021 was driven by Canada, Russia, China, the United States, Guyana, Norway and Argentina; while it is projected to have fallen in the UK, Brazil, Colombia and Indonesia.
The entity expects demand to remain “solid” this year, driven by economic growth that will be “robust” and again estimated, as last month, that the impact of the Omicron variant is “small and short-lived” , according to the agencies AFP and Bloomberg.
However, he warned that there continues to be “uncertainty regarding new variants or restrictions on mobility”, as well as problems in supply chains, and their correlative impact on the demand for fuel by industries and transport.
In terms of fuels, OPEC forecasts that light distillates (especially for the petrochemical industry) will continue to drive demand, while gasoline and diesel and gasoline, used for transportation, will continue to recover and reach pre-pandemic levels this anus.
Regarding jet fuel, although “the private tourism sector recorded considerable gains”, business travel is not expected to fully recover during 2022.
For its part, the organization ruled out that the new monetary stimulus cut policies by the world’s main central banks will affect the crude oil market.
The report published today by the organization reinforces the forecast that the 23 OPEC+ countries (composed of OPEC and its allies) will continue with the current production plan.
The scheme, implemented in the middle of last year after the historic cut in production of 10 million barrels per day due to the coronavirus pandemic in April 2020, allows the organization’s countries to increase their production by 400,000 barrels per day each month.
In this way, by February of this year, the OPEC countries can produce 28.5 million barrels per day compared to the 30.4 million that were offered before the Coronavirus crisis.
In any case, the countries have had difficulties to be able to increase the offer to the levels that the organization allows: in December the OPEC members added only 166,000 barrels per day.
According to the report, during the third quarter of last year, OPEC produced 26.9 million barrels per day, 1.7 million barrels less than the demand for barrels from the cartel.
The discrepancy between supply and increased demand is such that during 2021 the barrel of Brent and WTI registered increases of 50% and 55%, respectively, despite falling, like a large part of commodities, during November and December due to to the volatility caused by the impact of Ómicron and the announcements of central banks such as the US Federal Reserve (FED).
However, since then it has recovered and today the Brent marked maximum values since 2014.
Source From: Ambito
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