Growth in global oil demand will be slower this year than previously thought as the global economy grows weaker due to the war in Ukraine. This is what the OPEC oil cartel writes in its monthly report. The Organization of the Petroleum Exporting Countries (OPEC) also revised downward forecasts for global economic growth.
OPEC now expects oil demand to grow by 3.7 million barrels (159 liters) per day this year. This is half a million barrels a day lower than previous forecasts. For the whole of 2022, total oil demand should average an average of 100.5 million barrels per day, according to the Organization of Major Petroleum Exporting Countries.
The cartel expects the global economy to grow by 3.9 percent this year. Previously, it was expected to be 4.2 percent. OPEC does not rule out that this growth will be weaker. According to the organization, high inflation due to the sharp rise in energy prices is causing headwinds for the economy. For Russia, OPEC is now seeing an economic downturn.
In addition, the demand for oil in China may come under pressure due to the lockdown measures against the Corona virus. Therefore, it is unlikely that OPEC will be in a hurry to increase production more aggressively in order to counteract higher oil prices. OPEC and its allies, including Russia, are gradually increasing production every month. Western countries called on OPEC + to pump more oil, but this was not heeded.
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