The Organization of the Petroleum Exporting Countries (OPEC) has reduced its forecast for the growth of global demand for oil in 2022, and says that “global demand will rise by 3.67 million barrels per day in 2022, down by 480,000 barrels per day from its previous forecast.”
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OPEC cuts its forecast for global oil demand growth in 2022
Brent and West Texas Intermediate crude prices rose on Tuesday, driven by the easing of restrictions imposed to combat Covid-19 in China, which would support demand, while the Organization of Petroleum Exporting Countries warned that it would not be able to compensate for Russian supplies.
At about 13:45 GMT, the price of a barrel of North Sea Brent crude rose 5.55% to $103.95, while the price of a barrel of West Texas Intermediate crude rose 5.24% to $99.23.
“Oil prices are rising faster than they fell yesterday, because the decline in demand in China related to the pandemic and the withdrawal of US strategic reserves are not convincing for the medium-term expectations,” which is still experiencing an upward bias, said Swissquote analyst Ipek Oskardiskaya.
On Monday, Interactive Investor analyst Victoria Scholar said Shanghai eased restrictions in some neighborhoods.
“The market has rebounded in an overly optimistic way at the moment,” said Stephen Innes, an analyst at SBI Asset Management, stressing that “this change in policy is due to the lack of food in large areas and the lack of distributors to deliver food (…) and this is not In any case, a reflection of the zero-Covid-19 policy.
The Secretary-General of the Organization of Petroleum Exporting Countries (OPEC), Muhammad Barkindo, warned the European Union yesterday that Russian oil exports, which amount to seven million barrels per day, which will not arrive due to sanctions, cannot be compensated, according to financial press reports.
Today, OPEC lowered its forecast for the growth of global demand for oil in 2022, citing “the consequences of the Russian military operation in Ukraine, high inflation with high crude oil prices, and the re-emergence of the mutated Omicron strain of the Corona virus in China.”
The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that “global demand will rise by 3.67 million barrels per day in 2022, down by 480,000 barrels per day from its previous forecast.”