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The Organization of the Petroleum Exporting Countries (OPEC) left its forecast for global oil demand growth in 2021 unchanged at 5.9 million barrels per day (bpd) in its latest monthly report, per Reuters.

Additional takeaways

“US shale supply outlook is now slightly more optimistic with rising oil prices, the output is seen recovering more in the second half of 2021.”

“2021 overall non-OPEC supply forecast left unchanged.”

“US liquids supply growth forecast raised by 71,000 bpd from the previous forecast to 370,000 bpd.”

“New virus variants, rising infections and slow start to vaccination programmes may cloud economic recovery at least for the first quarter of 2021.”

“OPEC’s oil output rose 280,000 bpd in December to 25.36 million bpd, driven by Libya, Iraq and UAE.”

“2021 forecast for global demand for OPEC’s crude left unchanged at 27.2 million bpd.”

Market reaction

Crude oil prices edged lower after this report and the barrel of West Texas Intermediate was last seen losing 0.45% on the day at $52.60.