Covid-19 Increased Global Debt By $24trn – OPEC Scribe

The Organisation of Petroleum Exporting Countries (OPEC) says the impact of the COVID-19 pandemic increased global debt by $24 trillion, taking it to $281 trillion during the crisis.
Speaking at the 135th meeting of the Economic Commission Board (ECB) of OPEC, the cartel’s Secretary-General, Dr. Sanusi Barkindo, urged member countries to be wary of the inflationary effect of their borrowings as the $24 trillion is more than the United States annual Gross Domestic Product (GDP).
Barkindo spoke just as the Petroleum Industry Bill (PIB) may, again, run into troubled waters this month as Shell Nigeria Exploration and Production Company (SNEPCo) yesterday opposed the passage of the proposed legislation in its present state, seeking a review of its provisions on the gas sector.
Barkindo also reiterated his earlier position that oil demand will hit pre-pandemic levels by the fourth quarter of 2021 to exceed 99 million barrels per day.
The meeting of the ECB, the organisation’s statutory economic think-tank, which meets in advance of the ordinary meetings of the OPEC conference, focused on reviewing the conditions of the global oil market, emerging trends related to the oil industry, including demand, supply and stock movements, as well as the recovery prospects for the world economy.
Barkindo highlighted the contributions of the Declaration of Cooperation (DoC) of participating countries, which continue to support the global oil market through voluntary production adjustments in the interest of market stability.
On OPEC forecast for demand recovery, Barkindo stated that the market optimism was a reaction to the more than 2.4 billion vaccine doses that have now been administered globally.
Also, there are signs that the international community is ramping up its support to developing countries to help bolster their acquisition of life-saving vaccines.
He said these efforts were drawing the world closer to bringing the pandemic under control, and thereby helping accelerate the global economic recovery, as the latest market developments point to much better conditions and improved prospects.
On market fundamentals, Barkindo stated that in terms of the global economy, the GDP growth forecast has risen from 4.4 per cent in November 2020 to 5.5 per cent in June 2021.
He added that an upward momentum into the second half of the year is being expected.
He restated his earlier forecast that China and the US will see the lion’s share of growth in 2021, with China’s economy expanding by 8.5 per cent and the US by 6.4 per cent.
According to him, India, despite having to confront a devastating second-wave of COVID-19 infections is still forecast to achieve a growth of 9.5 per cent.
He said: “The forecast for world oil demand has decreased from 6.2 mb/d in November 2020 to 6 mb/d in June 2021. The outlook for later this year looks especially promising with demand slated to exceed 99 mb/d in the fourth quarter. This prospect would bring us back close to pre-pandemic levels.”