OPEC lowers forecast for oil demand growth in 2022

Last updated: May 12, 2022 at 8:24 a.m. ET

First published: May 12, 2022 at 8:23 a.m. ET

The Organization of the Petroleum Exporting Countries on Thursday lowered its forecast for global oil demand growth due to the Russia-Ukraine war and COVID-19 restrictions.

OPEC, in its monthly report, said it expects global oil demand to rise by 3.4 million barrels per day, year-over-year, in 2022, down 300,000 barrels per day from its April forecast. OPEC expects demand growth in the second quarter to slow to 2.8 million barrels per day from 5.2 million barrels per day in the first quarter.

“Request…

The Organization of the Petroleum Exporting Countries on Thursday lowered its forecast for global oil demand growth due to the Russia-Ukraine war and COVID-19 restrictions.

OPEC, in its monthly report, said it expects global oil demand to rise by 3.4 million barrels per day, year-over-year, in 2022, down 300,000 barrels per day from its April forecast. OPEC expects demand growth in the second quarter to slow to 2.8 million barrels per day from 5.2 million barrels per day in the first quarter.

Demand in 2022 is expected to be impacted by ongoing geopolitical developments in Eastern Europe, as well as restrictions related to the COVID-19 pandemic,” the organization wrote.

July Brent crude

BRN00

BRNN22

,
the global benchmark, was down $1.81, or 1.7%, at $105.70 a barrel on ICE Futures Europe. West Texas Intermediate Crude for June Delivery

CL.1

CLM22

fell $1.59, or 1.5%, to $104.12 a barrel on the New York Mercantile Exchange.


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Felix J. Dixon