OPEC on Thursday cut its forecast for growth in world oil demand in 2022 for a second straight month, citing the impact of Russia's invasion of Ukraine, rising inflation and the resurgence of the Omicron coronavirus variant in China.
In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said world demand would rise by 3.36 million barrels per day (bpd) in 2022, down 310,000 bpd from its previous forecast.
For the latest headlines, follow our Google News channel online or via the app.
The Ukraine war sent oil prices briefly above $139 a barrel in March, the highest since 2008, worsening inflationary pressures. OPEC has cited suggestions that China, with strict COVID lockdowns, is facing its biggest demand shock since 2020 when oil use plunged.
“Demand in 2022 is expected to be impacted by ongoing geopolitical developments in Eastern Europe, as well as COVID-19
pandemic restrictions,” OPEC said in the report.
Nonetheless, OPEC still expects world consumption to surpass the 100 million bpd mark in the third quarter, and for the 2022
annual average to just exceed the pre-pandemic 2019 rate.
OPEC and its allies which include Russia, known as OPEC+, are unwinding record output cuts put in place during the worst
of the pandemic in 2020 and have rebuffed Western pressure to raise output at a faster pace.
At its last meeting, OPEC+ swerved the Ukraine crisis and stuck to a previously agreed plan to boost its monthly output target by 432,000 bpd in June.
OPEC+ has been undershooting the increases due to underinvestment in oilfields in some OPEC members and, more recently, losses in Russian output.
The report showed OPEC output in April rose by 153,000 bpd to 28.65 million bpd, lagging the 254,000 bpd rise that OPEC is
allowed under the OPEC+ deal.
Read more:
Saudi Arabia trying to provide solutions, not be cause of problem: Energy minister
OPEC tells IMF that oil price rally mainly due to geopolitics
Also Read
-
Oil markets are balanced, volatility not linked to OPEC+: UAE energy minister
Crude oil markets are balanced, and volatility is linked to factors outside the control of the OPEC+ producers group, United Arab Emirates Energy ... Gulf -
OPEC+ decides to stick to modest boost in output as Russian war roils markets
OPEC and allied oil-producing countries decided Thursday to stick to a modest increase in production, even as Europe’s proposed phaseout of Russian ... Energy -
OPEC+ sees bigger 2022 surplus amid slower demand growth: Report
OPEC+ sees a surplus of 1.9 million barrels per day (bpd) in 2022, 600,000 bpd higher from a previous forecast, amid expectations of slower demand ... Gulf -
OPEC+ likely to raise June output by 432,000 bpd at next meet, sources say
OPEC+ is likely to stick to its existing deal and agree another 432,000 barrel per day oil output increase for June when it meets on May 5, six ... Energy -
Biden doesn’t want OPEC to increase oil production
Biden’s rejected call for OPEC members to increase oil production has left many DC think tankers hyperventilating about the US being hung out to dry ... Opinion -
OPEC tells IMF that oil price rally mainly due to geopolitics
OPEC told the International Monetary Fund’s steering committee on Thursday that the surge in oil prices was largely due to the Ukraine crisis, in the ... Energy -
OPEC+ supply gap widens in March as sanctions hit Russian output
OPEC+ produced 1.45 mln barrels per day (bpd) below its production targets in March, as Russian output began to decline following sanctions imposed by ... Energy -
Iraq committed to OPEC+ despite pressure to increase output: Oil minister
Iraq is committed to OPEC+ despite being pressured to increase its oil production outside the remit of the OPEC+ policy on output, Oil Minister Ihsan ... Middle East
