Barkindo: There Will be Significant Uncertainty in Oil Market in Coming Weeks

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Emmanuel Addeh in Abuja The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr. Sanusi Barkindo, has urged the global oil and gas industry to expect some level of unc…

The Secretary General of the Organisation of Petroleum Exporting Countries , Dr. Sanusi Barkindo, has urged the global oil and gas industry to expect some level of uncertainty in the market in the coming weeks on the back of the new variant of COVID-19, Omicron.

“New cases of the variant are being reported in various parts of the world with each passing hour, thus we will need to remain vigilant in assessing the impacts of this latest chapter in the pandemic, as especially it relates to our demand scenarios,” he noted. He added: “In spite of the steady progress that has been made on the economic recovery, we do expect significant levels of uncertainty in the weeks ahead, which could slow down the growth momentum.

In 2022, he noted that world oil demand is anticipated to increase by 4.2 mb/d, unchanged from last month while world total demand in 2021 is now pegged at 96.4 mb/d and at 100.6 mb/d in 2022, surpassing pre-pandemic levels. “In terms of the supply-side, non-OPEC supply in 2021 is expected to grow by 0.7 mb/d to average 63.6 mb/d, unchanged from last month. For 2022, non-OPEC supply growth is forecast at 3.0 mb/d for an average of 66.7 mb/d, also unchanged from last month.

 

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