Opec revised down its oil demand forecast for 2021 by 350,000 barrels per day but left its assessment for the current year relatively unchanged, as it factored in uncertainty over the impact of Covid-19 on transportation fuels.
Global demand for 2021 is estimated to increase by 5.9 million bpd, largely due to the possible slowdown in demand for fuel in the first half of the year in OECD economies.
The outlook for the current year is 9.77m bpd, which is only marginally lower than its earlier estimate pegged at 9.8m bpd.
For the current year, the exporters' group estimates OECD oil demand to drop by 5.48m bpd, with much of the decline attributed to the Americas. Non-OECD demand is set to fall by 4.29m bpd but China, which has seen growth since the beginning of the third quarter, is expected to continue this trend in the last quarter of 2020.
Overall demand for the year is expected to reach 89.99m bpd, Opec said, while the forecast for 2021 is estimated to be marginally higher at 96.89m bpd. The outlook falls significantly short of the nearly 100m bpd average seen in 2019.
Opec+, the alliance between Opec and non-member producers, will begin gradually increasing production by 500,000 bpd in January. The group cut back a record 9.7m bpd earlier this year to reverse collapses in demand and prices due to the pandemic.
The alliance will cut 7.2m bpd for three months until March, with a monthly monitoring committee convening to oversee compliance. Opec+ is set to meet on January 3 and 4 to discuss current levels of adherence to the output restriction pact.
Brent, the international marker was up 0.88 per cent, trading at $50.41 per barrel at 6.21pm UAE time. West Texas Intermediate, the US gauge, was up 1.05 per cent at $47.06 per barrel.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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How to become a Boglehead
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
