OPEC raises its forecast for global oil demand

The Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global demand for oil during the first quarter of this year by a large percentage, with a delay in part of the recovery in demand for the current year as a result of the emergence of the mutant Omicron of the emerging Corona virus.
The organization raised its forecast for global oil consumption by 1.1 million barrels per day, equivalent to the annual increase in consumption before the emerging Corona virus pandemic.And the Bloomberg News Agency quoted the organization’s monthly report as saying, “It is expected that the impact of the new mutant, Omicron, will be simple and short-lived, as the world is better prepared to deal with the emerging corona virus and the challenges associated with it.”

The revised OPEC data means that the organization’s countries and their allies in the “OPEC Plus” grouping go ahead with their plans to increase production by 400,000 barrels per day during the next month, will not lead to the emergence of a large excess of supply in the market. The OPEC Plus group had taken its decision to increase production earlier this month.

While OPEC raised its forecast for global oil demand during the first quarter of this year, it lowered its forecast for the second and third quarters, which led to maintaining demand growth forecasts for the next year as a whole at the level of 4.2 million barrels per day.

At the same time, it is likely that OPEC Plus’ continuation of the gradual increase in production will lead to the emergence of an oversupply early next year.