OPEC cuts its forecast for global oil demand
The Organization of the Petroleum Exporting Countries expects lower growth in global demand due to the recession in the global economy and the consequences of the coronavirus measures in China. For 2022, experts expect an average increase of 2.5 million barrels per day.
Fears of a global recession are dampening the demand for black gold. (Icon picture)
This came according to the cartel’s monthly report, which was published on Monday. They lowered their forecast by 0.1 million barrels (159 liters each). The forecast for next year was also lowered by 0.1 million barrels to 2.2 million barrels per day.
OPEC justified the expected reduction with “great uncertainty about the global economy, accompanied by fears of a global recession.” China’s non-proliferation policy has also contributed to the uncertainty.
As the monthly report shows, OPEC expects global demand for crude oil to reach 101.3 million barrels per day by the end of this year. Demand is then supposed to rise to 103.4 million barrels per day by the end of 2023.
The broader production alliance OPEC+, in which OPEC members cooperate with other producing countries such as Russia, recently decided to reduce the agreed production volume by a total of 2 million barrels per day from November. This measure aims to support oil prices.
“Tv expert. Hardcore creator. Extreme music fan. Lifelong twitter geek. Certified travel enthusiast. Baconaholic. Pop culture nerd. Reader. Freelance student.”