downgraded organization oil exporting countries OPEC predicts oil demand growth of around 500,000 barrels per day and 400,000 barrels per day in 2022 and 2023 respectively.
OPEC said in the organization’s monthly report released today Wednesday that this reduction is due to the slowing global economy, China’s “zero-Covid” strategy and economic challenges in European countries.
The organization said global oil demand will increase by 2.6 million barrels per day in 2022, less than the previous estimate of 3.1 million barrels per day.
Global oil demand in 2023 will grow by 2.3 million barrels per day, down from the previous estimate of 2.7 million barrels per day.
“The geopolitical risks remain ongoing, the extension of the Covid-19 related lockdowns and the pandemic outbreaks in the Northern Hemisphere during the winter season,” the organization said.
Oil demand in OECD countries will grow by 1.4 million barrels per day in 2022, down from the previous forecast of 1.6 million barrels per day.
The demand for crude produced by OPEC countries this year will reach 28.7 million barrels per day, or 200,000 barrels per day less than previous estimates.
OPEC’s oil demand was revised down by 300,000 barrels per day in 2023.
OPEC also predicts global economic growth of 2.7% and 2.5%, respectively in 2022 and 2023. This revision down from the organization’s previous estimate of 3.1% each year.
The International Monetary Fund cut its growth forecast for 2023 and warned in its report on Tuesday of a cost of living crisis as the global economy continues to be affected by the war in Ukraine, adding to inflationary pressures and slowdown in China.
A potential slowdown in China, the world’s largest importer of crude oil, and indications that the US Federal Reserve may announce further interest rate hikes led to a massive oil sale in oil markets this week.
The price of oil rose about 10% last week when the OPEC + group, which includes 23 members, announced a two million barrels a day production cut.
During a press conference after the meeting, the Saudi Minister of Energy, Prince Abdulaziz bin Salman, stressed the importance of “pre-action” to address the state of uncertainty. He stressed that he will continue to make the commitments required to improve the global economy.
“OPEC Plus will remain an important force in the stability of the global economy. The amount of uncertainty we are experiencing is unprecedented. The current situation makes it difficult for large consumers to use the paper market,” according to the minister of paper. ‘Saudi energy.
Regarding the impact of central bank decisions on demand, Prince Abdulaziz said: “We do not know the implications of anti-inflation policies on global demand.”
