The Organisation of the Petroleum Exporting Countries (OPEC) adjusted its expectations for oil demand in 2021, as producing countries move to increase output in the coming months.
Citing a stronger economic rebound, the organisation stated that its March prediction on the year-on-year increase of oil demand was readjusted to reflect observations of current market demands for oil.
Its six million barrels per day (bpd) prediction for the month was a notch higher than what was projected in March, although that figure was also modified.
OPEC pointed to “stimulus programmes and a further easing of Covid-19 lockdown measures,” influencing the modification of figures.
It added that “an acceleration in the vaccination rollout, largely in the OECD region” also spurred its positive outlook on demand for oil globally in the face of a slow start for many countries’ economies.
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Oil-producing countries reversed decisions to reduce oil production output in the month of April which was initially set to push prices up.
This decision was engendered by vaccination campaigns rolled out globally, giving hope for productive oil sales.
According to AFP, OPEC upgraded its output in March by 0.2 million to rise above 25 million bpd, with credit going to Iran.
