OPEC cuts global oil demand forecast for 2022, 2023

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.

PHOTO: OPEC has lowered its 2022 global oil demand growth forecasts by 460,000 b/d to 2.64 million b/d. Getty Images

The Vienna-based group has attributed lower oil demand outlook to the re-emergence of COVID-19 cases in China and its extension of zero-COVID restrictions.

Recently released monthly oil market report by OPEC has also factored in economic challenges in Europe and inflationary concerns in major economies.

This is the group’s first monthly report after undertaking the largest cut to its supply targets since 2020.

OPEC and allies including Russia (OPEC+) had agreed to slash its joint production quota by 2 million b/d from August levels starting November at the OPEC+ meeting last week in Vienna, Austria.

Earlier, Saudi Energy Minister Prince Abdulaziz bin Salman stated that the US-led initiative to cap Russian oil prices added to market uncertainty. According to the report, the group "pre-emptively and proactively adjusted their overall production" in order to maintain market stability on an ongoing basis.

By Konica Bhatt

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