OPEC raises forecasts for global oil demand in Q1 2022

OPEC logo

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that it maintained its forecasts for the levels of global demand for oil in 2021 and 2022.

“Some of the recovery previously expected in the fourth quarter of 2021 has been shifted to the first quarter of 2022, followed by a steadier recovery throughout the second half of 2022,” OPEC said in the report.

OPEC maintained its forecast that world oil demand will grow by 5.7 million barrels per day (bpd) in 2021, and by 4.2 million bpd in 2022.

OPEC also expects oil demand to average 99.13 million bpd in the first quarter of 2022, up 1.11 million bpd from its forecast last month.

“Moreover, the impact of the new Omicron variant is projected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges," it said.

In addition, OPEC maintained its expectations for the growth of oil supply from outside in 2021, saying that it may rise 0.7 million bpd to 63.7 million bpd.

It also reiterated estimates for next year, noting that supply may see a rise by 3 million bpd to 66.7 million bpd.

The report lowered forecasts for global economic growth in 2021 from 5.6% to 5.5%, while keeping forecasts for 2022 unchanged at 4.2%.

The report also highlighted that OPEC output rose by 285,000 bpd in November to 27.71 million bpd.