Sources: “OPEC +” production does not change
LONDON (Reuters) – OPEC and its allies are likely to stick to their current policy of gradually increasing oil production, despite an upwardly revised demand forecast for 2022, four sources said on Wednesday.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, meet at 15.00 GMT.
The group agreed in July to gradually undo record production cuts by adding 400,000 barrels per day per month to the market.
One of the sources said ahead of today’s talks that it is likely to stay OPEC+On the agreement unchanged.
And on Tuesday, OPEC + experts revised the forecast for oil demand growth in 2022 to 4.2 million barrels per day, up from a previous forecast of 3.28 million barrels per day, which strengthens the argument for an increase in production in the future.
The outlook for 2022 appears optimistic based on 2021 data. OPEC + expects global oil demand to grow by 5.95 million barrels per day in 2021 after a record drop of about nine million barrels per day in 2020 due to the Covid-19 pandemic, but demand grew by about three million barrels per day only in first half of 2021.
“Demand is disappointing against the higher outlook and headwinds remain, especially in Asia. We expect demand not to rebound to 2019 levels until the second half of 2022,” said Amrita Sen, co-founder of Research Energy Aspects.
The United States has called for a faster pace of production increases from OPEC + at a time when benchmark Brent crude is trading above $ 72 a barrel, near its highest level in several years.
The demand forecast adjustment came during the meeting of the OPEC + Joint Technical Committee, which yesterday presented the latest report on the state of oil markets in 2021-2022.
On Tuesday, OPEC+ sources said the report, which was not published, forecast a deficit of 900,000 bpd this year while global demand recovers.
The report initially projected a surplus of 2.5 million bpd in 2022, but it was later revised to a smaller surplus of 1.6 million bpd due to stronger demand, the sources said.
According to the sources, a presentation by the Joint Technical Committee showed that commercial oil stocks in the OECD countries, most of whose members are developed countries, will remain below their average for the years 2015-2019 until May 2022 instead of January 2022 in the initial expectations.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, meet at 15.00 GMT.
The group agreed in July to gradually undo record production cuts by adding 400,000 barrels per day per month to the market.
One of the sources said ahead of today’s talks that it is likely to stay OPEC+On the agreement unchanged.
And on Tuesday, OPEC + experts revised the forecast for oil demand growth in 2022 to 4.2 million barrels per day, up from a previous forecast of 3.28 million barrels per day, which strengthens the argument for an increase in production in the future.
The outlook for 2022 appears optimistic based on 2021 data. OPEC + expects global oil demand to grow by 5.95 million barrels per day in 2021 after a record drop of about nine million barrels per day in 2020 due to the Covid-19 pandemic, but demand grew by about three million barrels per day only in first half of 2021.
“Demand is disappointing against the higher outlook and headwinds remain, especially in Asia. We expect demand not to rebound to 2019 levels until the second half of 2022,” said Amrita Sen, co-founder of Research Energy Aspects.
The United States has called for a faster pace of production increases from OPEC + at a time when benchmark Brent crude is trading above $ 72 a barrel, near its highest level in several years.
The demand forecast adjustment came during the meeting of the OPEC + Joint Technical Committee, which yesterday presented the latest report on the state of oil markets in 2021-2022.
On Tuesday, OPEC+ sources said the report, which was not published, forecast a deficit of 900,000 bpd this year while global demand recovers.
The report initially projected a surplus of 2.5 million bpd in 2022, but it was later revised to a smaller surplus of 1.6 million bpd due to stronger demand, the sources said.
According to the sources, a presentation by the Joint Technical Committee showed that commercial oil stocks in the OECD countries, most of whose members are developed countries, will remain below their average for the years 2015-2019 until May 2022 instead of January 2022 in the initial expectations.
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