London: 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. The reasons for the same were cited as slowing economies, resurgence of China’s COVID-19 containment measures and high inflation.
Oil demand is expected to increase by 2.64 million barrels per day or 2.7 per cent in 2022, the Organisation of the Petroleum Exporting Countries (OPEC) said in a monthly report. “The world economy has entered into a time of heightened uncertainty and rising challenges, amid the 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 a report.
Even after the downgrade, OPEC still expects demand growth to be stronger this year. The International Energy Agency sees oil demand rising by 2.34 million bpd by next year.