empty
 
 
01.09.2021 11:37 AM
OPEC forecasts demand to outstrip supply in 2022

This image is no longer relevant

OPEC said the oil deficit this 2021 will be offset by a surplus in 2022, when production rises further.

The data to be presented during the group's meeting on Tuesday is expected to convince the coalition and its partners that they can continue ramping up output this October.

But even if production increases by about 400,000 bpd monthly, supply will continue to decline until the end of this year, as global stocks are projected to drop by an average of 825,000 bpd over the next four months.

Fortunately, such figures only pose new challenges to Saudi Arabia and other countries, so it is likely that the oil market will tip back into surplus starting January, which will persist all throughout 2022.

This image is no longer relevant

OPEC even forecast global supply to exceed demand by an average of 2.5 million bpd next year, which will cause inventories to grow by 913 million barrels. But this will happen only if the group outputs approximately 6 million barrels per day.

In any case, oversupply will be acute during the seasonal lull after winter, and would amount to at most 4.4 million bpd in February.

Saudi Energy Minister Prince Abdulaziz bin Salman also said during the group's last meeting that they are prepared to pause or even reverse the scheduled production increases if necessary.

Andrey Shevchenko,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback