Oil cartel OPEC sees increasing uncertainty in the global oil market and is again adjusting its forecast for oil demand downwards.
The organization points to, among other things, high inflation, corona restrictions in China, recession concerns and interest rate hikes by central banks, which could affect oil demand.
Oil demand is now expected to increase by 2.55 million barrels per day this year. That is 100,000 less per day than previously thought. It is the fifth time since April that OPEC has lowered its forecast for oil demand for this year. Expectations for next year were also lowered.
“The global economy entered a period of significant uncertainty and increasing challenges in the fourth quarter of 2022,” OPEC said in its monthly report. As a result, the oil cartel is working with allies like Russia to cut production to prop up prices. OPEC+ production will drop by 2 million barrels per day this month. That decision has led to great criticism from the United States because they want prices at the pump to fall.
OPEC+ will meet again in early December at its headquarters in Vienna to discuss the production. However, Saudi Arabia’s oil minister, seen as the leader of OPEC, said at the climate summit in Egypt that the alliance of oil-producing countries will remain cautious about production policy.