OPEC+ Technical Committee forecasts growth in oil market this year

JANUARY 03, 2022

Although there was a deficit in the oil market in 2021, there will be an abundance in 2022, said a report by OPEC+ Technical Committee.

The report was released following today's meeting of the organization. The document says that the previous forecast that daily oil demand will increase by 4.2 million barrels to 100.8 million barrels in the new year remains valid. At the same time, the daily supply and demand in the oil market will exceed 1.4 million barrels this year, and oil reserves will increase by 525 million barrels. The largest surplus is expected in March, April and November.

Given the high uncertainty in the oil market, the committee members put forward two options on the decline or increase in demand. According to the first scenario, the daily oil demand will rise by 3.8 million barrels to 100.3 million barrels, and the daily surplus will increase to 1.8 million barrels. The second scenario says that the demand will increase by 4.4 million barrels to 101.1 million barrels and surplus to 1.2 million barrels.