Opec says global oil demand set for record rise in 2021

Opec says global oil demand set for record rise in 2021

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Bloomberg

The Organisation of Petroleum Exporting Countries (Opec) expects demand for its crude oil to rebound sharply next year, surpassing levels seen before the coronavirus crisis, as rival producers struggle to revive output. The Opec forecasts the need for its crude will surge by 25% in 2021 to average 29.8 million barrels a day, higher than the level required in 2019, according to a monthly report. While the increase is partly driven by a recovery in global oil demand as economic growth resumes, an even bigger factor is the misfortune of Opec's competitors. After slumping 7.4% this year, the US will see only limited production growth in 2021, the report showed. In the meantime, Opec and its allies are cutting production to clear the glut left behind by the Covid-19 crisis and prop up prices. The cartel said it implemented more than 100% of the cutbacks pledged in June. The Opec+ alliance, which includes non-members such as Russia, is expected to announce at a meeting on Wednesday that it will phase out some of the curbs from next month. Under the terms of its agreement, the cuts taper from 9.6 million barrels a day currently “” roughly