Oil demand continues to grow

Last year, oil demand increased throughout the year. Organization for Economic Co-operation and Development countries largely drove the growth. For all of 2021, worldwide demand was 96.6 million barrels per day, 5.6 mbd higher than in 2020.

Non-OPEC countries produced more than 71% of this amount. The Americas led production with 25.2 mbd. While OPEC didn't provide production figures for all of 2021, its share of liquids production was about 27% in 2020 and the first half of 2021, rising to 28% in the third quarter.

In the fourth quarter, worldwide demand rose to 99.8 mbd. Non-OPEC countries continued ramping up production in 2021, producing 70.3 mbd in the fourth quarter, up from 67.6 mbd in the first quarter. OPEC also boosted production, particularly in the third quarter (fourth-quarter figures aren't currently available) when it averaged 26.9 mbd, 1.7 mbd higher than the first quarter.

OPEC expects demand to strengthen in 2022, forecasting it to reach 102.6 mbd in the fourth quarter of this year. The organization expects non-OPEC countries to supply 73.1 mbd during that period, or more than 71% of the worldwide demand.

Oil prices have resumed their ascent with the OPEC price currently at nearly $88 a barrel. This is $20 higher than at the end of 2019. In December 2021, oil prices abated somewhat from October's $83 level, ending the year at $77.97 a barrel.