The Organization of the Petroleum Exporting Countries (OPEC) is optimistic that the global oil market will recover but fears that Coronavirus variants will pose risks to the market.

Mohammed Barkindo, Secretary-General of OPEC, and experts in the organization said today, Tuesday, that "global oil demand will strongly recover during the second half of 2021 with the decrease in oil stocks, warning that any Coronavirus mutated strains would pose a threat to this recovery." 

Sources from OPEC+, which brings together OPEC and its Russian-led allies, revealed that next Thursday, the group is expected to discuss the gradual easing of the current oil production restrictions as of next August.

Observers in OPEC confirmed that "the group may boost production by more than one million barrels per day."

Demand in 2021 was expected to grow by 6 million BPD, with 5 million BPD of that in the second half, OPEC Secretary-General Mohammad Barkindo said at Tuesday's meeting of experts, known as the Joint Technical Committee.

"The current 'wild card' factor is the 'Delta variant' of the pandemic that is resulting in rising cases and renewed restrictions in many regions," he said.

Barkindo said oil demand growth in the second half would show "a significant increase, even if uncertainties and associated risks would be factored in," with preliminary data of May showing inventories in OECD industrialized economies falling below the 2015-2019 level.

It is worth noting that "OPEC +" seeks to achieve the primary goal of bringing oil stocks in line with the past five years' average.