The Organization of Petroleum Exporting Countries (OPEC) reduced for a fifth time since April its forecast for global oil demand growth in 2022 by 100,000 barrels per day, to 2.5 million barrels per day.
In its monthly report released on Monday, the Organization predicted that demand for oil would rise to 2.2 million barrels per day in 2023.
According to OPEC, the most significant factors influencing its expectations are China’s ‘zero Covid’ policy, the global geopolitical situation, and weak economic activity.
It further pointed out that the global economy will enter a difficult period of uncertainty in the fourth quarter of 2022.
The oil supply from outside the organization will increase by about 1.9 million barrels per day in 2022, and by 1.5 million barrels per day in 2023, OPEC added.