Today, Wednesday, OPEC reduced its expectations for the growth of global oil demand for 2022 for the fourth time since April, and also reduced the numbers next year, citing the slowdown in economies, the return of procedures for containing the Corona virus in China, and high inflation.
According to a monthly estimate from the Organization of Petroleum Exporting Countries (OPEC), the demand for oil will rise by 2. 64 million barrels per day, or 2.
460 thousand less barrels per day than anticipated, or 7%, in 2022.
In order to bolster the market, OPEC and its partners, often known as OPEC+, this week made the biggest production cut since 2020 in response to the low demand. The choice was condemned by the US.
“The global economy has entered into a period of increased uncertainty and increasing challenges, amid continued high levels of inflation, tightening monetary policy by major central banks, high sovereign debt levels in many regions, as well as continuous supply problems,” OPEC said in the report.
The demand for oil is expected to increase by 2. 34 million barrels per day, or 360 thousand barrels per day, over the course of the following year, according to OPEC.
02 million barrels per day, and OPEC still anticipates demand in 2023 to be higher than it will be in 2019 due to the pandemic.
OPEC reduced its expectations for the growth of the global economy in 2022 to 2. 7% from 3. 1%, and expected next year reduced to 2. 5% and said it is possible that there will be further decline.
According to OPEC’s assessment, “the major risk of retreat is still present,” and “there is a limited chance of ascent owing to variables like financial procedures in the European Union and China, and any resolution to the situation in Ukraine,” among other things.
The majority of this year, OPEC+ concentrated on raising oil output in order to eliminate the customary cuts implemented in 2020 after the Kofid-19 epidemic reduced consumption.
Its decision in September 2022 called for an increase of 100,000 barrels per day in the group’s production goal, including about 64 thousand barrels per day, which was supposed to come from the ten members of OPEC.
According to the report, Saudi Arabia and Nigeria led an increase in OPEC production of 146 thousand barrels per day to 29.77 million barrels per day in September.
Due to the economy’s slowdown, OPEC lowers its projections for demand growth in 2022 and 2023.
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