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(OPEC) links the rise in oil prices to the recovery of global demand, the decline in inventories and the easing of travel restrictions

13-10-2021

The Organization of Petroleum Exporting Countries (OPEC) linked the increase in oil prices last September by 5% to the recovery of global demand for oil, the decline in stocks and the easing of movement and travel restrictions related to the virus (Covid 19) in a number of Asian countries. The organization's general secretariat also indicated in its monthly report, which was distributed in Vienna today, Wednesday, that the "slow restart of US oil production" and concerns about the lack of natural gas and coal supplies in Europe and Asia also contributed to pushing prices higher. The General Secretariat announced that the value of the (OPEC) reference basket for the month of September increased by $3.55, or 5.0 percent, on a monthly basis, to settle at $73.88 a barrel. It stated that since the beginning of this year until last September, the basket rate increased by $26.21 per barrel, or 64.5 percent, compared to the same period last year, reaching an average of $66.83 per barrel. In its report, (OPEC) expected that global demand for oil would rise by 5.8 million barrels per day in 2021, after adjusting it down from 5.96 million barrels per day in the assessment of the previous month. And it added that the average global demand next year is expected to reach 100.8 million barrels per day, supported by the healthy economic momentum in the major consuming countries and better management to confront the Corona virus. The growth of global oil supply from outside (OPEC) in 2021 was revised down by 300,000 barrels per day compared to the assessment of the previous month, and now stands at 700,000 barrels per day. And (OPEC) indicated in its report that the expectations of supply growth from outside the organization for the year 2022 were revised to increase by 100,000 barrels per day due to the fundamental change in the parameters of the oil market. According to the report, the (OPEC) production of crude oil rose last September by 490,000 barrels per day, reaching an average of 27.33 million barrels per day, according to available secondary sources. The report stated that the balance of supply and demand for the organization’s crudes in 2021 was adjusted by an increase of 100,000 barrels per day compared to the assessment of the previous month, to stand at 27.8 million barrels per day, which is higher by about five million barrels per day compared to 2020. The levels of demand for (OPEC) crudes in 2022 were also adjusted, with an increase of 100,000 barrels, compared to the assessment of the previous month, to stand at 28.8 million barrels per day, i.e., about one million barrels per day higher compared to 2021.