OPEC cuts oil demand growth forecast | News

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The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2022, also lowering next year’s figure amid a global outlook of rising inflation and rising interest rates. in sequence:

OPEC+ announces production cut to boost prices

“The world economy has entered a period of great uncertainty and increasing challenges in the fourth quarter of 2022,” OPEC said.

In its monthly report, the oil organization estimates that the demand for the so-called black gold will be 99.57 million barrels per day (mbd) on average this year, 2.43% more than last year, but 100,000 bd less than what was calculated a month ago. .

Energy commodities. Crude oil prices extended losses ��1% after OPEC cut its 2022 global demand forecast, while rising Covid-19 case numbers in China clouded the outlook for fuel consumption in the world top crude importing nation. Currently WTI at $84.91 and Brent $92.36.

—Arth Ben (@ArthurBenta)
November 15, 2022

In another 100,000 bd it reduced growth for 2023 and now figures it at 2.24 mbd (2.25%) -instead of the 2.34 mbd forecast in October-, so that consumption would total an average of 101.82 mbd, that is, 200,000 bd less than I expected.

“Downside risks include high inflation, monetary tightening by major central banks, high sovereign debt levels in many regions, tightening labor markets and persistent supply chain constraints.”

This report comes just before OPEC and its allies, known as OPEC+, meet on December 4 to set policies on their agenda, part of which included recent production cuts.

The group, which Saudi Arabia’s energy minister quoted last week as saying it will remain cautious, made a 100,000 barrel-a-day cut to OPEC+’s production target for October, with an even bigger cut planned for November.

The report further emphasized that OPEC production fell by 210,000 barrels per day in October alone to 29.49 million, more than the reduction promised by OPEC+.

The US is concerned that OPEC’s likely decision to cut oil production poses serious problems for the country and could even be construed as a hostile act, according to a US Treasury report.

US President Joe Biden’s administration has assembled his top foreign, economic and energy policy officials and tasked them with pressuring Middle Eastern allies such as Saudi Arabia, the United Arab Emirates and Kuwait to vote against the decline in oil production.

Saudi Foreign Minister Prince Faisal bin Farhan claimed in October that the OPEC+ decision was purely economic and had no political implications.

He also said in an interview with Al Arabiya television that the coalition aims to stabilize energy markets and promote the interests of producers and consumers.

He added that relations with the United States are long-standing and strategic, and affirmed that the military cooperation between the two countries has contributed to peace and stability in the region.

Disclaimer: Via Telesur – Translated by RJ983

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