OPEC cuts oil demand growth forecast again amid growing economic challenges – National

OPEC on Monday cut its forecast for global oil demand growth in 2022 for the fifth time since April, and also revised down next year’s figure.

According to the Organization of the Petroleum Exporting Countries (OPEC) monthly report, oil demand in 2022 will increase by 2.55 million barrels per day (bpd), or 2.6%, down 100,000 bpd from previous projections.

“The global economy has entered a period of great uncertainty and increasing challenges in the fourth quarter of 2022,” OPEC said in a report.

“Downside risks include high inflation, monetary tightening by major central banks, high government debt levels in many regions, tightening labor markets and persistent supply chain constraints.”

The report is the last before OPEC and its allies (collectively known as OPEC+) meet on December 4 to decide policy. The group, which recently cut production targets, will remain cautious, Saudi Arabia’s energy minister was quoted as saying last week.

2:18Oil demand not expected to return to pre-pandemic levels

In October, the group cut its OPEC+ production target by 100,000 bpd, with further sharp cuts beginning in November, as oil prices fell on fears of a recession.

OPEC output fell by 210,000 bpd to 29.49 million bpd in October, outpacing promised OPEC+ cuts, according to the report.