The OPEC estimated that the demand for crude would be lower than expected in the first half of the year mostly due to the resurgence of COVID-19 cases in major economies such as India and Brazil. On the other hand, accelerating vaccinations push positive sentiment for the second half of 2021.
When it comes to the oil supply, the OPEC revised down forecast for Norway and Canada due to an "extensive seasonal maintenance," while also noting global growth will be pushed by these two countries alongside Brazil and China. Meanwhile, the US liquid supply is expected to decline.
OPEC also revised the global economic growth forecast for 2021 up to 5.5 percent. While the major contributors to the global growth were stimulus measures in the United States and accelerating recovery in Asia, the OPEC noted that the outlook remains affected by concerns related to the COVID-19 variants as well as the pace of the vaccinations.
The US economy is expected to surge 6.2 percent this year, according to OPEC's estimates, followed by a 4.2 percent rise in the Eurozone, 3.0 percent in Japan and an outstanding 8.5 percent in China. India will see a significant growth of 9.7 percent in 2021, while Brazil and Russia are expected to achieve 3.0 percent growth each.