OPEC stated in its monthly report on Thursday that it expected oil demand to increase by 3.2%, or 3.1 million bpd, in 2022. This is as a 260,000 bpd decrease from the previous prediction.
OPEC lowered its forecast for growth in world oil demand in 2022 on Thursday, marking the third time since April that it has done so. It noted that OPEC had anticipated an increase in the demand for oil of 3.2%, which is equivalent to 3.1 million barrels per day, in 2022. However, a new prediction with a drop of 260,000 barrels per day compared to the previous forecast has now been released.
The organization cited the economic impact of Russia’s invasion of Ukraine, high inflation, and efforts to contain the coronavirus pandemic as the primary reasons for the revision. The perspective of the Organization of the Petroleum Exporting Countries stands in stark contrast to that of the International Energy Agency (IEA), which earlier on Thursday revised upward its projection for the level of demand.
OPEC Monthly report on demand outlook
OPEC stated in its monthly report that it anticipates an increase in the global demand for oil of 3.1 million barrels per day (bpd) in 2022. This is a decrease of 260,000 bpd from the previous prediction.
However, the organization did not adjust its growth prediction for 2024, which is currently set at 2.7 million bpd. OPEC lowered its global economic growth prediction for 2022 from 3.5% to 3.1% and for the next year to 3.1%, citing the possibility of further deterioration.
OPEC’s oil sales trends pre and post Covid
Even though prices have reached all-time highs, oil consumption has made a comeback from the worst of the epidemic and is on track to surpass 2019 levels this year. However, these forecasts for 2022 growth have been significantly reduced due to high crude costs and outbreaks of Chinese coronavirus.
“Global oil market fundamentals continued their strong recovery to pre-COVID-19 levels for most of the first half of 2022, albeit signs of slowing growth in the world economy and oil demand have emerged,” OPEC stated in its report.
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