In an industrial insight by Platts Analytics, the global oil output is expected to increase significantly increase in spite of the ongoing revisions in demand, due to the pandemic.

The forecast indicates that the global output will increase to about 3.2 million barrels per day, 2021 and to about 5.5 million barrels per day in 2022. This comes across as a result of two key factors namely, OPEC+ & Saudi Arabia’s decision to maintain output levels as had been outlined in April, resulting in growth in demand due to addition in supply over the upcoming months. The second factor that has bolstered the confidence in the oil supply is the resumption of talks between The US and Iran.

Easing/lifting of sanctions on Iran will lead to increased export of US oil and an increase in demand of and the supply of oil to Iran. Coupled with the increased impetus for vaccination programs worldwide, the lack of demand from nations like India and Latin American countries will be offset by increased demand in the US, Europe, and China.