Opec’s monthly report gives oil prices another reason to fall

At 22:40 on Monday evening, Opec released its monthly report. The monthly report said the rate at which Opec members agreed to cut production in November was 104 percent, unchanged from October. Opec crude oil production rose 707,000 b/d to 25.109 million b/d in November.

After the release of the monthly report, the two oil continued the previous decline, the day turned down.

For The November oil market, Opec’s monthly report concluded that production rose by 710,000 barrels to 25.11 million barrels, driven by Libya’s economic recovery. In addition, net imports of petroleum products from several major oil consuming countries continued to decline.

Net import of Chinese petroleum products (change) : net import of Chinese petroleum products decreased by 2.267 million barrels/solstice9.710 million barrels/day compared with the previous round;

Net import of Indian petroleum products (change) : net import of Indian petroleum products decreased by 312,000 b/solstice3.214 b/d compared with the previous round;

Net imports of petroleum products (change) : net imports of petroleum products in the United States decreased by 28,000 b/b/solstice-527,000 b/d compared with the previous round.

Looking ahead, Opec’s monthly report said recent news about possible vaccination programmes in major economies provided upside to its 2021 growth forecast. But when it comes to specific forecasts, the monthly report is more pessimistic.

On the demand side, the monthly report adjusted the projected growth rate of global crude oil demand in 2020 from -9.75 million barrels per day to -9.77 million barrels per day, adjusted the projected growth rate of global crude oil demand in 2021 from 6.25 million barrels per day to 5.9 million barrels per day, and lowered the forecast of global crude oil demand in 2021 by 200,000 barrels per day to 27.2 million barrels per day.

On the supply side, the monthly report forecasts average non-OPEC production of 63.52 million b/d in 2021.