- OPEC+ nations expect a slight decline in crude oil demand in 2021 as per the forecast published in its monthly reports.
- The demand outlook for 2022 has been kept unchanged at 4.2 million barrels per day.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies expect a slight fall in crude oil demand in 2021 as per the forecast published in their monthly report. OPEC+ expects oil demand to grow by 5.82 million barrels per day, down from 5.96 barrels estimate in its last month report. The downward forecast was mainly due to lower-than-expected actual data during the first nine months of 2021.
However, OPEC+ nations have kept the demand outlook unchanged for next year at 4.2 million barrels per day. The crude oil prices have surged steadily in the last two months as industries users are switching to crude oil from natural gas due to high gas prices, which is supporting the oil demand and prices in the international markets.
Let us explore 3 AIM-listed oil and gas stocks:
UK Oil and Gas Plc (LON: UKOG)
The company operates in oil and gas exploration and production. It holds a stake in seven oil and gas assets located in Southern England. The company has recently undertaken maintenance work at its 85% owned Horse Hill oil field. During the upgrade work, the site was renovated and prepared for 24-hour continuous production output. Also, the first tranche of safety equipment was installed at the site. The two weeks long maintenance work at the site was successfully completed, after which oil production was re-established.
UK Oil and Gas Plc’s current market cap stands at £25.17 million as of 13 October 2021.
Eco (Atlantic) Oil and Gas Ltd (LON: ECO)
The company is engaged in the acquisition and development of oil and gas assets. Its principal projects are located in Guyana and Namibia. The company continues to operate in the Guyana region, one of the largest productive oil reserves. In the last five years, over nine billion barrels of oil have been discovered in the region. The company, along with its joint venture partners, has already discovered two oil reserves on the Orinduik Block and continues to carry out exploration in the region. Also, the company is evaluating opportunities in West Africa and South America.
3 oil and gas penny stocks to buy for long term growth
Eco (Atlantic) Oil and Gas Ltd’s current market cap stands at £52.47 million as of 13 October 2021.
Falcon Oil and Gas Ltd. (LON: FOG)
The company is engaged in the development of oil and gas assets currently located in Australia, South Africa, and Hungary. The company is currently exploring and drilling at different sites to locate oil and gas reserves. The probable discovery of oil reserves would support company’s revenue and profitability.
Falcon Oil and Gas Ltd’s current market cap stands at £73.15 million as of 13 October 2021.