Crude futures under pressure as OPEC lowers 2022, 2023 global oil demand forecast
Front-month ICE Brent has gone down by $0.96/bbl on the day, to $93.33/bbl at 09.00 GMT.
PHOTO: OPEC has lowered its global oil demand growth forecast by 460,000 b/ddi to 2.64 million b/d for this year. Getty Images
Upward pressure:
Investment bank UBS has forecast that Brent will move above the $100/bbl mark over the coming quarters. It expects oil markets to tighten further.
US State Department spokesman Ned Price has said that reviving the 2015 Iran nuclear deal is “not our focus right now," adding that the likelihood of a deal happening anytime soon is very low. Price went on to say that Iranians have “made it very clear” they are not prepared to make this deal.
Downward pressure:
OPEC has lowered its global oil demand growth forecast by 460,000 b/d to 2.64 million b/d for this year, and by 360,000 b/d to 2.34 million b/d for 2023.
The group has attributed a weaker oil demand outlook to the re-emergence of Covid-19 cases in China and its extension of zero-Covid restrictions. China has imposed fresh lockdowns and travel restrictions across the country after detecting two "more infectious" Omicron variants.
The fresh monthly oil market report by OPEC has also factored in economic challenges in Europe and inflationary concerns in other major economies across the world.
The International Monetary Fund (IMF) has cut its global economic growth forecast for 2023. It has warned that “worst is yet to come,” and predicted global growth to slow to 2.7% next year.
By Konica Bhatt
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