Baghdad The Organization of the Petroleum Exporting Countries expected a decline in global demand for crude in the last quarter of this year due to the delta mutated of the Corona virus, indicating that further recovery will be partially delayed until next year.
In its monthly report, the organization said it expected oil demand to average 99.70 million barrels per day in the fourth quarter of 2021, down 110,000 barrels per day from last month’s forecast.
It indicated that “the increased risks resulting from Corona’s infections, which are mainly fueled by the Delta strain, cloud the expectations of oil demand in the last quarter of the year.”
It indicated that “as a result of this, the demand for oil in the second half of 2021 was slightly revised downward, which partially delayed the recovery of oil demand until the first half of 2022.”
Governments, companies and dealers are closely watching the pace of recovery in oil demand, after it collapsed last year. A faster return could boost prices and challenge the view that the fallout from the pandemic could undermine consumption for longer or for good.
Oil prices continued to rise, today, Monday, in light of a slow recovery in crude production in the Gulf of Mexico after Hurricane Ida, as well as expectations of a decrease in black gold reserves.
Source: National Iraqi News Agency