On Monday, OPEC reduced its expectations for the growth of global oil demand in 2022 for the fifth time since April, and also reduced the number next year, noting escalating economic challenges, including high inflation and interest rates.
The Organization of Petroleum Exporting Countries (OPEC) said in a monthly report that the demand for oil in 2022 will increase 2. 55 million barrels per day, or 2. 6%, a decrease of 100 thousand barrels per day from previous expectations.
The global demand growth forecast in the entire 2023 also reduced to 2. 24 million barrels, a decrease of 100,000 barrels from previous expectations.
“The global economy entered a period of uncertainty and increasing challenges in the fourth quarter of 2022,” OPEC added in the report.
It stated that in the second and third quarters of 2022, the global oil supply exceeded the total demand by 0. 2 million barrels and 1. 1 million barrels, respectively, which confirms a move towards the surplus.
She said that the global economy entered a severe blurry stage and increasing challenges in the fourth quarter, and leave the forecasts of economic growth in 2022 and 2023 unchanged.
Reuters quoted OPEC as saying that its oil production fell 210,000 barrels in October to 29. 49 million barrels led by Saudi Arabia’s reduction, which informed OPEC that it reduced production 84 thousand barrels to 10. 957 million in October..
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