OPEC cuts 2022 oil demand growth outlook

The Organization of the Petroleum Exporting Countries (OPEC) lowered its outlook for global oil demand growth, as well as its estimates of supply from outside the organization for the current year, in light of Russia-Ukraine war and the continuing repercussions of COVID-19 pandemic. 

According to OPEC monthly report issued today, April 12, global oil demand growth is expected to record 3.7 million barrels per day (bpd) in 2022, which is less than the initial estimates of about 0.5 million b/d. 

OPEC also lowered its forecast for non-OPEC supply growth this year at 2.7 million b/d, which is less than the initial estimates of about 0.3 million bpd. 

It cut its outlook for global economic growth in 2022 to 3.9% from 4.2%, due to the repercussions of the conflict in Eastern Europe, as well as the continuing effects of COVID-19 pandemic. 

The report stated that OPEC output rose by 57,000 b/d, reaching 28.557 million b/d in March.