OPEC said Thursday that global oil demand could rise even more sharply this year as the world economy shows a strong recovery from the pandemic, which would support prices already at a seven-year high.

The oil shortage has also given a boost to energy markets, and a report from the Organization of the Petroleum Exporting Countries also showed the group failed to meet a pledge to increase oil production in January under an agreement with allies.

The OPEC report said global oil demand is expected to grow by 4.15 million bpd this year, unchanged from its forecast last month, following a surge of 5.7 million bpd in 2021.

“The upside potential for the forecast prevails, based on the continued strong recovery observed, with GDP already reaching pre-pandemic levels,” OPEC said in a report commenting on its 2022 demand forecast.

“With most of the world’s economies expected to grow, the short-term outlook for global oil demand is certainly optimistic,” OPEC said in a separate commentary on demand in 2022.

Global consumption is expected to surpass the 100 million bpd mark in the third quarter, matching last month’s forecast. OPEC said the world last used more than 100 million bpd of oil in 2019.

OPEC previously thought the effect of the Omicron coronavirus variant would be moderate, and the report said it did not have as negative an economic impact as previous waves of COVID-19.

Oil rose after the report was released, trading above $92 a barrel. It reached $94 on Monday, the highest level since October 2014.

OUTPUT UNDERPERFORMS

The report also showed higher OPEC production as the group and its non-member allies, known as OPEC+, phase out record production cuts imposed in 2020.

OPEC+ sought to increase production by 400,000 bpd, of which about 254,000 bpd is attributable to the 10 participating OPEC members, but output has increased by less than that as some producers struggle to raise output.

The report showed that OPEC production rose by just 64,000 bpd to 27.98 million bpd in January.

Seven of OPEC’s 13 members cut production, including Venezuela, Libya and Iraq.

According to the report, top exporter Saudi Arabia increased production by 54,000 bpd, but Saudi Arabia told OPEC it increased production by 123,000 bpd, bringing its output to 10.145 million bpd.

The forecast for total non-OPEC oil supply growth in 2022 was unchanged, as was the forecast for U.S. shale oil production.

OPEC said it expects the world will need 28.9 million bpd from its members in 2022, up 100,000 bpd from last month, and theoretically allows for further production increases.