Domestic oil product demand rebounds amid economic recovery efforts: Mustapa

02 Jun 2021

Domestic oil product demand, except that of the aviation sector, has rebounded amid the ongoing economic recovery efforts, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said.

He said comparing the movement control order (MCO) 1.0 (from March 18 to May 3, 2020) with MCO 3.0 (from May 12 to June 7, 2021), the opening of several economic sub-sectors had also played a role in spurring oil demand.

“The aggressive implementation of the Covid-19 vaccination programme has helped the economic activity recovery process in several countries. This will indirectly increase consumer confidence and at the same time bounce back oil demand,“ he said in a statement today.

Mustapa said the total global crude oil demand is expected to increase to 94 million barrels per day in the second quarter of 2021 from 83 million in the same period last year.

“On average, the price of Brent crude oil for the January-May 2021 period was US$63 (RM260) per barrel compared to US$40 in the same period last year,” he said.

Meanwhile, he said Malaysia welcomed the decision by the Organisation of the Petroleum Exporting Countries and its allies (Opec+) to increase crude oil production gradually by two million barrels per day at an appropriate rate according to market conditions.

He said Malaysia also welcomed Opec+’s decision to monitor the fundamentals of the oil market to ensure that the process to balance and stabilise the global oil market could be achieved.

Mustapa led the Malaysian delegation to the virtual 17th Opec+ meeting on Tuesday.

Source: Bernama