OPEC lowers forecasts for global oil demand after increasing economic problems

The Organization of Petroleum Exporting Countries (OPEC) has lowered its forecast for global oil demand growth in 2022 for the fifth time since April. Next year’s forecasts were also lowered due to increasing economic problems, including high inflation and interest rate hikes.

OPEC said in its monthly report that oil demand in 2022 is expected to increase to 2.55 million barrels per day, or 2.6%, 100,000 barrels per day less than previously expected.

On the grounds that the world is entering a phase of increasing instability and economic hurdles in Q4 2022. Risk factors that could have a negative impact include sharply rising inflation, restrictive monetary policy by central banks, high government debt in many regions, sluggish development of labor markets, and persistent bottlenecks in the supply chain.

The report is the last before OPEC and OPEC+ meet on Dec. 4 to discuss policy-making.

The report also shows that OPEC production fell by 210,000 barrels per day in October to 29.49 million barrels per day, exceeding the cuts agreed to by OPEC+.

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