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Oil
demand in 2022 will increase by 2.55 million barrels per day
(bpd), or 2.6%, the Organization of the Petroleum Exporting
Countries (OPEC) said in a monthly report, down 100,000 bpd from
the previous forecast.
"The world economy has entered a period of significant
uncertainty and rising challenges in the fourth quarter of
2022," OPEC said in the report.
"Downside risks include high inflation, monetary tightening by
major central banks, high sovereign debt levels in many regions,
tightening labour markets and persisting supply chain
constraints."
This report is the last before OPEC and its allies, together
known as OPEC+, meet on Dec. 4 to set policy. The group, which
recently cut production targets, will remain cautious, Saudi
Arabia's energy minister was quoted as saying last week.
Next year, OPEC expects oil demand to rise by 2.24 million bpd,
also 100,000 bpd lower than previously forecast.
Despite commenting on the rising challenges, OPEC left its 2022
and 2023 global economic growth forecasts steady and said while
risks were skewed to the downside, there was also upside
potential.
"This may come from a variety of sources. Predominantly,
inflation could be positively impacted by any resolution of the
geopolitical situation in Eastern Europe, allowing for less
hawkish monetary policies," OPEC said.
Oil maintained a decline after the report was released, trading
around $95 a barrel.
For October, with oil prices weakening on recession fears, the
group made a 100,000 bpd cut to the OPEC+ production target,
with an even bigger reduction starting in November.
The report said that OPEC output fell by 210,000 bpd in October
to 29.49 million bpd, more than the pledged OPEC+ reduction.
(Reporting by Alex LawlerEditing by David Goodman and Susan
Fenton)
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