OPEC: Demand for Oil in 2022 Above Pre-Corona Crisis Levels

Demand for oil will gradually pick up in the coming period and will exceed the level of before the corona crisis in the second half of next year.

 

Oil cartel OPEC expresses this expectation in its monthly report on the oil market. On the way to that peak, OPEC expects another dip in demand in the first quarter of next year.

Due to the increase, demand remains clearly above the amount of oil that OPEC countries and allies such as Russia and Kazakhstan are now pumping. This is due to agreements on production restrictions that the countries made last year when oil demand suddenly fell due to the corona outbreak. With these agreements, the countries wanted to keep the oil price stable.

The production agreements expire in August, but no agreement has been reached on an increase in production because the United Arab Emirates is obstructing. However, there are now reports that an agreement has been reached with that country, which would open the way to a limited expansion of oil production.

The production restrictions would not completely expire until April if it were up to Saudi Arabia. The predicted dip can explain this wish in the first quarter of 2022.