The Organization of the Petroleum Exporting Countries (OPEC) issued its report for June today, Tuesday, as it kept its expectations for the growth of oil demand at 3.4 million barrels per day during 2022, but it expects that the pace of growth in oil demand will decrease to the next half-year, with inflation and conflict controlling the International Economy.
OPEC raised its forecast for oil demand in the third and fourth quarters while lowering it for the second quarter of this year. The organization expects an increase in oil demand by 3.1 million barrels per day in the second half of 2022, saying that daily demand will reach 101.8 million barrels in the second half of the year and confirming its expectations that the demand for oil in 2022 will exceed pre-Corona levels.
According to what "Bloomberg" quoted an OPEC delegate, global oil consumption is expected to increase by 1.8 million barrels per day next year, down from 3.4 million barrels per day scheduled for this year. The forecasts will be reviewed by representatives from the group's member states next week.
OPEC production declined by 176 thousand barrels per day in May compared to April. The OPEC report attributed this to the decrease in production in Iran, Iraq, Libya, Nigeria, and Gabon. In comparison, global oil production declined to 98.75 million barrels per day in May.
The report indicated that Russian production decreased by 930 thousand barrels per day in the second quarter.
OPEC and its allies surprised energy markets earlier this month by agreeing to speed up production return, which halted during the pandemic, but spare production capacities are limited to Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait.
The Organization for Economic Co-operation and Development said last week that the global economy would pay a heavy price for the war in Ukraine, including weaker growth, stronger inflation, and potential long-term damage to supply chains.