Opec’s revenue jumps 77% in 2021 on higher oil prices

The total value of petroleum exports from member countries climbed to $561bn

Opec reported higher revenue for 2021, compared with the previous year. Reuters

Opec’s oil revenue jumped 77 per cent in 2021 as oil prices recovered from the coronavirus-induced slowdown on the back of higher demand.

The total value of petroleum exports from countries that make up the 13-member bloc climbed to $561 billion last year, Opec said in its latest annual statistical bulletin on Tuesday.

Saudi Arabia’s petroleum exports rose by about 70 per cent annually to $202bn while the UAE's exports were up 75 per cent at $54.5bn. Iraq’s exports grew 80 per cent to $79.7bn.

Brent, the global benchmark for two thirds of the world's oil, rose about 67 per cent last year.

It has rallied about 48 per cent so far this year as developed economies recover from the pandemic and Russia's military offensive in Ukraine continues, with the EU planning to ban most oil imports from Moscow by the end of this year.

Brent was trading 1.78 per cent higher at $117.14 a barrel at 3.04pm UAE time on Tuesday. West Texas Intermediate, the gauge that tracks US crude, was up 1.65 per cent at $111.38 a barrel.

World crude production in 2021 rose 0.8 per cent annually to 69.64 million barrels per day, the report said.

Opec production increased 2.7 per cent while output by non-Opec countries fell 0.4 per cent during the period.

Meanwhile, oil demand rebounded from 2020 to grow 6.3 per cent to an average of 96.92 million bpd last year.

“Although oil demand grew year on year in every region, the largest gains were recorded for OECD [Organisation for Economic Co-operation and Development] Americas, OECD Europe and China,” the report said.

“Oil demand in Opec member countries was bullish in 2021, gaining 5.3 per cent year on year.”

Opec member countries exported an average of 19.66 million bpd of oil in 2021, a slight decrease of about 0.04 million bpd or 0.2 per cent compared to 2020, and remained below pre-pandemic levels.

The bulk of crude from Opec Countries — 14.24 million bpd or 72.4 per cent — was exported to Asia. “Considerable volumes” were also exported to Europe as well as to the “OECD Americas” region, the report said.

Exports of petroleum products from Opec member countries averaged 4.03 million bpd in 2021, up 15.8 per cent compared with 2020.

Overall, proven oil reserves across the world stood at 1.54 trillion barrels at the end of 2021, roughly at 2020 levels.

The number of active rigs among Opec members rose 10 per cent annually to 489, according to the data.

Saudi Arabia, Opec's largest producer, added six rigs last year to hit a total of 65 while the UAE added two rigs to take its tally to 42. Iraq, Opec's second-biggest producer, added 14 rigs for a total of 44.

Opec and its allies, including Russia, are boosting production as they unwind record output cuts put in place in 2020.

Earlier this month, the Opec+ super group decided to increase its July and August output to 648,000 bpd, boosting supply by about 50 per cent.

This will bring an additional 216,000 bpd, on top of a scheduled 432,000 bpd that are coming to the market next month.