The Organization of Petroleum Exporting Countries has remained optimistic in its predictions for 2021, expecting demand to reach 96.5 million barrels per day, an increase of six million on 2020 levels.
This, combined with OPEC’s previous policy of production restraints, means analysts expect the market to tighten sufficiently by August for demand to start outstripping supply.
This has been reflected in recent movements in crude prices, which have climbed back to pre-pandemic levels.
Aside from demand, the other factor OPEC and its allies must take into account are the actions of other oil-rich states such as the world’s number one producer, the United States.
Changes among the alliance’s members themselves will no doubt also be on the agenda.
After facilities in war-torn Libya began producing again from the end of 2020, eventually adding a million barrels per day to the market, all eyes will be on the US embargo on Iranian oil exports.