Key oil market themes to watch out for in 2021
China and India are set to drive oil demand growth, while Iran could complicate Opec calculations.
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IT IS with cautious optimism that we bid farewell to 2020. Rising probability of safe and effective vaccines becoming available has altered the outlook for the global economy and with that, for oil demand.
Reflecting the slightly upbeat sentiment, S&P Global Ratings in a report released in late November said its forecasts have stabilised for the first time since the Covid-19 pandemic began and while considerable uncertainties remain, the risks to growth are more balanced as acute downside risks ease and upside risks emerge.
The ratings agency expects Asia-Pacific GDP to shrink by about 2 per cent in 2020 and grow by close to 7 per cent in 2021. However, for the region excluding China, activity is not expected to return to pre-Covid levels before the third quarter of 2021. Ratings and Platts are divisions of S&P Global.
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