The Organization of Petroleum Exporting Countries (OPEC) on Thursday revised its forecast for global economic growth and oil demand this year, citing COVID-19-induced restrictions and geopolitical tensions. The oil alliance said in its monthly oil market report that the global economy is expected to grow 3.5% in 2022, compared to a forecast of 3.9% a month ago.
OPEC said notable challenges facing the global economy include “geopolitical tensions, continued pandemic, rising inflation, worsening supply chain issues, high levels of sovereign debt in many regions and the monetary tightening expected by central banks in the US, UK, Japan and the Eurozone.” The oil group also expects global oil demand this year to rise by 3.4 million barrels per day year-on-year, down 300,000 barrels per day from last month’s estimate.
Oil demand in 2022 is expected to be “affected by ongoing geopolitical developments in Eastern Europe, as well as restrictions related to the COVID-19 pandemic,” OPEC said in its report.
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