OPEC further cuts global oil demand forecasts in 2022, 2023

Vienna, Austria | Xinhua | The Organization of the Petroleum Exporting Countries (OPEC) on Monday further revised down its forecasts for global oil demand in 2022 and 2023, citing economic challenges and geopolitical uncertainties.

The latest forecasts were released in OPEC’s monthly report. The oil-producer alliance had already made several downward revisions to its demand projections earlier in the year.

OPEC now expects global oil demand to average 99.6 million barrels per day (bpd) this year, down 0.1 million bpd from its previous forecast. The alliance attributes the weaker demand projection to “ongoing geopolitical uncertainties and weaker economic activities.”

For next year, OPEC has also cut its forecasts for world oil demand by 0.1 million bpd to 101.8 million bpd, saying it anticipates that oil demand growth will be “challenged by uncertainties related to economic activities, COVID-19 containment measures and geopolitical developments.”

Last month, OPEC and its allies, a group known as OPEC+, announced a major production cut of 2 million bpd to bolster oil prices.