OPEC Predicts Oil Supply Deficit in the Second Half of 2021

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) expects an increase in the demand for oil in the second half of 2021 as economies recover from the impact of COVID-19.

Citing sources, Reuters reported that with oil price hitting its highest since 2018, a further boost in August will be discussed when OPEC+ meets on July 1 to discuss output increase. But some producers are wary about new demand setbacks and higher Iranian supply.

OPEC’s demand forecasts show that in the fourth quarter, the global oil supply will fall short of demand by 2.2 million barrels per day (BPD), giving the producers some room to agree to add output.

Supply is, therefore, expected to step up in August 2021 following OPEC+ talk.