OPEC Secretary General ready to adjust oil output increases

January 3, 2021

OPEC Secretary-General Mohammad Barkindo said he expects demand for crude oil to shift from “reverse to forward gear” this year.
“We anticipate that crude oil demand will shift from reverse to forward gear and rise to 95.9 million barrels a day this year, a gain of 5.9 million barrels a day from 2020,” according to a statement posted on the production cartel’s website. “The non-OECD will be in the driver’s seat with growth of around 3.3 million barrels a day.”

Barkindo’s comments followed the Joint Technical Committee meeting via video-conference ahead of the OPEC+ ministerial meeting scheduled for Jan. 4. The Organization of Petroleum Exporting Countries and its allies are due to meet online to discuss the potential addition of a further 500,000 barrels a day in February. OPEC’s production rose 190,000 barrels a day to 25.3 million barrels a day in December, with Libya driving the gain, according to JBC Energy. Angola, Iran, UAE, Venezuela and Algeria also boosted supply. Barkindo also said: “Collectively, we have delivered an unprecedented response to an unparalleled market shock and continue to lead the industry on the road to recovery”.

“The outcomes of the December 3rd Ministerial meeting pave the way for a gradual return of 2 mb/d to the market over the coming months, while the participating countries stand ready to adjust these levels depending on market conditions and developments”.