OPEC cuts 2022, 2023 oil demand growth view as economy slows

Summary

Cuts 2022 demand growth to 2.64 million bpd from 3.1 mln bpd
Still sees demand topping pre-pandemic level in 2023
OPEC September output rises 146,000 bpd, led by Saudi

LONDON, Oct 12 (Reuters) – OPEC on Wednesday cut its 2022 forecast for growth in world oil demand for a fourth time since April and also trimmed next year’s figure, citing slowing economies, the resurgence of China’s COVID-19 containment measures and high inflation.

Oil demand will increase by 2.64 million barrels per day (bpd) or 2.7% in 2022, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report, down 460,000 bpd from the previous forecast.

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“The world economy has entered into a time of heightened uncertainty and rising challenges, amid ongoing high inflation levels, monetary tightening by major central banks, high sovereign debt levels in many regions as well as ongoing supply issues,” OPEC said in the report.

The lower demand outlook gives additional context for last week’s move by OPEC and its allies, known as OPEC+, to make their largest cut in output since 2020 to support the market. The United States criticized the decision. However, on Wednesday, the U.S. Energy Department also lowered its expectations for global output and consumption in 2023.