RIYADH: The secretary-general of the Organization of the Petroleum Exporting Countries, Mohammed Barkindo, is bullish on oil recovery and sees demand picking up over the next few years.
“Energy and oil demand have picked up significantly in 2021, after the massive drop in 2020, and continued expansion is forecast for the longer-term,” Barkindo wrote today in the group’s World Oil Outlook.
“Non-OPEC liquids supply is projected to rise from 62.9 mb/d in 2020 to 70.4 mb/d in 2026, the key contributors to growth are the US, Brazil, Russia, Guyana, Canada, Kazakhstan, Norway and Qatar,” OPEC’s chief said in a virtual press conference.
Non-OPEC liquids output is set to decline from a peak of 71 mb/d around 2030 to 65.5 mb/d in 2045.
The WOO report says that more electric vehicles on the road for alternative energy will decline the demand for oil in rich countries.
Internal combustion engine vehicles are set to retain the largest market share at over 76 percent by 2045. Oil demand in the transportation sector is expected to stay around 46 mb/d after 2025.
Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri said: “OPEC should move toward reliable pricing globally as cost of prices plays a crucial role in global interest.”
Dr. Ayed Al-Qahtani, director of research at OPEC, said that short-term investment is of paramount importance to prevent a potential hike in prices.
Brent oil dipped on Tuesday after topping $80 per barrel for the first time in nearly three years, as a five-day rally ran out of steam with investors locking in profits.
Oil benchmark prices have been on a tear, with fuel demand growing and traders expecting major oil-producing nations will decide to keep supplies tight when OPEC meets next week.
Brent dipped 75 cents, or 0.9 percent, to $78.78 a barrel at 12:37 a.m. EDT (1637 GMT), after reaching its highest level since October 2018 at $80.75.
US West Texas Intermediate crude fell 60 cents, or 0.8 percent, to $74.85 a barrel, after hitting a session high of $76.67, highest since July.