LONDON: OPEC stuck to its forecast for a strong recovery in world oil demand in the rest of 2021 and predicted oil use would rise further in 2022 similar to pre-pandemic rates, led by growth in China and India.
The Organization of the Petroleum Exporting Countries said in its monthly report on Thursday that demand next year would rise by 3.4 percent to 99.86 million barrels per day (bpd), averaging more than 100 million bpd in the second half of 2022.
Oil demand averaged 99.98 million bpd in 2019, according to OPEC.
“In 2022, healthy expectations for global economic growth in addition to improved containment of COVID-19 through the acceleration of vaccination programs, effective treatment and natural immunization, particularly in emerging and developing countries, along with frequent testing procedures, are assumed to spur consumption of oil next year to comparable pre-pandemic levels,” OPEC said in the report.
The report reflected OPEC’s confidence that world demand would recover robustly from the pandemic, allowing the group and its allies to further ease record supply curbs made in 2020. Some analysts had seen oil demand peaking in 2019.
OPEC also maintained its prediction that demand would grow by 5.95 million bpd in 2021.
Oil was trading just below $74 a barrel before the OPEC report was released. The price has climbed more than 40 percent so far this year with the help of supply cuts by OPEC and its allies, a group known as OPEC+.
OPEC+ agreed in April to gradually ease output cuts from May to July and has yet to decide on plans for the rest of 2021 after a dispute between Saudi Arabia and the United Arab Emirates disrupted talks. Reuters reported on Wednesday that the two had reached a compromise.
Thursday’s report showed higher OPEC oil output, reflecting the decision to pump more. Output in June rose 590,000 bpd to 26.03 million bpd, OPEC said.
OPEC sees world oil demand reaching pre-pandemic level in 2022
https://arab.news/gug77
OPEC sees world oil demand reaching pre-pandemic level in 2022
- Demand next year to rise by 3.4 percent to 99.86 million bpd
- Demand to average more than 100 million bpd in the second half of 2022
Closing Bell: Saudi main market edges up to close at 11,216.9
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, closing at 11,216.93, up 28.20 points, or 0.25 percent.
The MSCI Tadawul 30 Index also advanced, finishing at 1,512.99, a gain of 0.29 percent, while the parallel market index, Nomu, inched up 0.09 percent to 23,887.01.
Trading activity was robust, with a total of 150.4 million shares changing hands and an aggregate value of SR3.3 billion ($880.2 million).
Among the top gainers, Zahrat Al Waha for Trading Co. surged 7.05 percent to SR2.58. The Mediterranean and Gulf Cooperative Insurance & Reinsurance Co. rose 5.26 percent to SR15.82, and Jahez International Co. for Information System Technology increased 4.68 percent to SR14.09.
Saudi Real Estate Co. added 4.47 percent to SR14.48, while Arabian Shield Cooperative Insurance Co. gained 4.3 percent to SR12.12.
On the other hand, Abdullah Saad Mohammed Abo Moati for Bookstores Co. fell 3.55 percent to SR44, and The Company for Cooperative Insurance dropped 2.92 percent to SR133.
Canadian Medical Center Co. eased 2.69 percent to SR6.15, Ataa Educational Co. declined 2.61 percent to SR52.15, and ADES Holding Co. finished 2.5 percent lower at SR18.31.
Meanwhile, Saudi Aramco Base Oil Co. announced that its board of directors has recommended distributing cash dividends for the second half of 2025.
The proposed payout is SR3.5 per share, bringing total dividends for the year to SR4.5 per share, representing around 70 percent of free cash flow in line with the company’s performance-linked dividend policy.
The total amount to be distributed for the second half stands at SR589.9 million, covering 168.2 million eligible shares.
Eligibility will be determined at the close of trading on the day of the company’s general assembly, with the distribution date to be announced later. Luberef shares last traded at SR105.5, up 3.53 percent.
Separately, the Capital Market Authority revealed that it has licensed Lesha Capital to conduct investment management and fund operations in the securities business, following the company’s completion of all required business registrations.
