OPEC and its allies remain confident that global demand for oil will remain strong
Agence Ecofin
Thursday 29 April 2021 Last update on Thursday, April 29, 2021 At 3:17 PM

While more than a billion doses of the Covid-19 vaccine have been administered worldwide, variants are gaining ground and this threatens economic recovery. But OPEC, which controls a third of global supply, remains optimistic about this situation.

On Tuesday, OPEC and its allies, united in OPEC +, decided not to give in to the panic caused by the explosion of cases of coronavirus contamination in India, Brazil and Japan. The group is thus maintaining its plan of April 1, aimed at gradually easing production restrictions from May to July. This is because it expects demand to pick up 6 million barrels per day in 2021, against a drop of 9.5 million barrels per day in 2020.

OPEC and its allies remain convinced that demand will remain strong in these countries and in the rest of the world thanks to the multiplication of vaccination campaigns. In total, it will bring 2.1 million barrels back to market for the next three months. As a reminder, OPEC + has reduced its supply by 8%, or about 8 million barrels per day, in an attempt to balance the market.

OPEC +’s decision not to cut production quotas was welcomed by the market, with Brent edging up from the previous day to reach $ 66 a barrel. Meanwhile, the cartel and its allies reported that at the end of March, the overall support rate for the demand-supply balancing efforts was 115%.

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