BRITAIN – For the fourth time since April, the Organization of Petroleum Exporting Countries (OPEC) today lowered its projections for the growth of the world’s oil demand for 2022. It also lowered its projections for the following year, citing the slowing of global economies, the resumption of measures to contain the Corona virus in China, and high inflation.
Following the largest production cut in the last two million-bar ministerial committee meeting, a decision that infuriated the United States, which wanted to boost output to pressure prices, this assessment suggests that the OPEC+ alliance may resort to more production discounts.
But the oil kartel has repeatedly emphasized that its decisions are subject to the evaluation of supply and demand and within the principle of maintaining the stability of the market, and are not subject to political considerations.
According to OPEC’s monthly report, oil demand will rise by 2.64 million barrels per day, or 2.7%, in 2022, which is 460 thousand barrels per day less than anticipated.
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.
According to OPEC’s report, “the global economy entered a period of increased uncertainty and increasing challenges, amid the continuation of high levels of inflation, the tightening of monetary policy by the major central banks, high levels of sovereign debt in many regions, as well as continuous supply problems.”
OPEC predicts an increase in oil demand of 2.34 million barrels per day, or 360 thousand barrels per day, over the course of the upcoming year.
OPEC+ raised oil output for the majority of this year in order to avoid the mandatory restrictions imposed in 2020 after the Kofid-19 epidemic reduced demand.
In September 2022, it decided to enhance the group’s production target by 100,000 barrels per day, with around 64,000 of those barrels per day coming from the ten OPEC members.
According to the data, OPEC’s daily production increased by 146,000 barrels to 29.
Saudi Arabia and Nigeria produced 77 million barrels per day in September, in the lead.
However, OPEC pumps much less than what the OPEC+ agreement called due to the lack of investment in oil fields by some members..
For the fourth time, OPEC adjusts its forecast for oil.
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