OPEC: Oil market restores balance, but risks persist

Oil production

The global oil market is finding the lost balance it lost because of last year’s outbreak of the coronavirus pandemic. Mohammad Barkindo, the secretary-general of the Organization of Petroleum Exporting Countries, thinks so.

According to Barkind, the organization’s member states should look to the future with cautious optimism. The events of the past weeks on the oil market, which resulted in the price rising, were said to be still for the most part due to speculative purchases of black gold than the actual growth in demand supported by the stronger economic recovery.

Global oil demand is now dragging mainly the Asian region, where there are already signs of a more robust economic recovery. Especially in China or India. Oil demand to rise to 96 million barrels per day this year, almost comparable to levels before the pandemic erupts, according to Mohammad Barkind.

The key factor will be the speed at which the vaccination progresses into the world. “Emerging economies appear to be slightly behind,” Barkindo noted, calling this one of the reasons why it is necessary to take into account the risks that oil demand will not return to normal so fast. Representatives of OPEC countries will discuss the market situation on Thursday, March 4.


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