Oil Demand to Stay Strong in Second Half 2021: OPEC

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Oil Demand to Stay Strong in Second Half 2021: OPEC
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- In its Monthly Oil Market Report on Thursday, the Organization of the Petroleum Exporting Countries (OPEC) kept its forecast unchanged for the second consecutive month and said demand would rise by 5.95 million barrels per day (bpd) this year, or 6.6%.

It said that demand would be strong despite a resurgence of the pandemic in countries like Japan, the Eurozone and India and lockdowns in these countries. “However, the ongoing vaccination efforts, growing share of recovered cases leading to increasing herd immunity, and the easing of lockdown restrictions lend optimism that the pandemic could be contained in the few months to come,” OPEC said in its report.

“Overall, the recovery in global economic growth, and hence oil demand, are expected to gain momentum in the second half,” it added.

Crude oil prices have crossed $70 right now as demand around the world improves. Higher oil prices have also led to an increase in oil stocks in India. ONGC (NS: ONGC ) has moved up 15% in May to Rs 123.95 as of June 10. Indian Oil (NS: IOC ) Corporation is up 28% to Rs 115.95. Hindustan Petroleum Corporation Ltd (NS: HPCL ) has zoomed over 27% to Rs 298.45 and Bharat Petroleum Corp. Ltd. (NS: BPCL ) is at Rs 483.55, up 15%.

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