On Monday, oil prices increased as OPEC+ maintained its intention to increase output by 400,000 barrels per day in November. As it gradually unwinds a historic production deal, OPEC+ expects to bring 2 million bpd back to the markets by the end of the year.
At 6.55 p.m. UAE time, Brent, the international benchmark for more than half of the world’s petroleum, was up 2.91% to $81.59 per barrel. The key US oil benchmark, West Texas Intermediate, rose 2.71% to $77.94 per barrel.
Due to a rise in gas costs and a faster-than-expected economic rebound in industrialised countries, oil prices are trading higher as demand outstrips supply. The likelihood of bigger amounts of oil products being consumed in power generation has increased as natural gas prices have risen as winter approaches, boosting total demand.
OPEC also remains largely bullish on oil demand, with its latest forecast expecting consumption to exceed pre-pandemic levels by 2022. The organisation expects global oil demand to reach 100.8 million bpd next year, according to its monthly oil market report for September.
OPEC increased its forecasted demand growth for 2022 by 900,000 bpd to 4.2 million bpd, citing more economic activity and fewer movement restrictions as reasons.
According to the International Monetary Fund’s most recent World Economic Outlook update in July, the global economy will rise by 6% this year.
According to Opec’s World Oil Outlook 2021 report, crude is predicted to remain the largest component of the international energy mix until 2045, as the world’s population grows and the global economy more than doubles in size to $270 trillion.
