Barkindo says Opec+ needs to be flexible and is seeking stable markets. – REUTERSPIXOpec's secretary general said on Tuesday he was cautiously optimistic the oil market would recover this year from the slump in demand brought about by the coronavirus pandemic.
Oil prices have rallied to an 11-month high this month, helped by a Jan 5 decision by most members of Opec+ to hold production steady in February and a pledge by Saudi Arabia to voluntarily cut output. "This year the way we see it is a year of recovery, whether it's going to be the end of the year where we are supposed to reach the balance or the beginning of 2022," Suhail al-Mazrouei said.
"Global oil demand is expected to recover by 5.5 million barrels per day to 96.6 mbd in 2021, following an unprecedented collapse of 8.8 mbd in 2020," the IEA said in its latest monthly report. The IEA said it now expected demand in the first quarter of this year to be 0.6 mbd less than previously forecast, with the full-year outcome revised down by 0.3 mbd.
It said that its forecasts assume that in the second half this year, Opec+ will continue to rein in output, withholding 5.8 mbd of oil from the market in line with their April 2020 agreement.