In the near future, OPEC+ members will have to increase oil production to meet growing demand, the International Energy Agency said. According to preliminary estimates, the world’s demand for hydrocarbons will rebound to pre-pandemic levels by the end of 2022.
As noted by the global energy watchdog, the cartel and independent oil producers will need to "open the taps to keep the world oil markets adequately supplied".
The agency's report says that by 2022, the OPEC+ group led by Saudi Arabia and Russia should ramp up crude supply by 1.4 million barrels per day, which is above its July 2021-March 2022 target.
Notably, in April, OPEC+ oil producers agreed to gradually ease oil output cuts from May to July 2021. The IEA estimates that this will help restore the current demand for hydrocarbons. Furthermore, if the United States lifts its sanctions against Iran, it will be easier to meet rising appetite for crude. In this case, "an additional 1.4 million barrels per day could be brought to market in relatively short order," analysts said.
