OPEC downgrades forecast for global oil demand growth in 2022 by 0.3 mln to 3.4 mln bpd

TASS Russian News Agency | May 12, 2022 at 3:57 PM

TASS, May 12. OPEC has downgraded its forecast for global oil demand growth in 2022 by 0.3 million barrels per day (bpd) to 3.4 million bpd due to the geopolitical situation in Eastern Europe and pandemic restrictions, the organization said in its May report.

Oil demand growth will slow to 2.8 million bpd in the second quarter from 5.2 million bpd in the first quarter, OPEC forecasts.

"Demand in 2022 is expected to be impacted by ongoing geopolitical developments in Eastern Europe, as well as COVID-19 pandemic restrictions," the organization notes.

OPEC believes that the growth rate of the world economy in 2022 will slow down to 3.5% (forecast in April - 3.9%), the Russian economy will decline by 6% (a month earlier, the organization expected a decline of 2%).

According to preliminary data, in March 2022, commercial oil reserves of OECD countries increased by 10.1 million barrels, to 2.621 billion barrels. This is 298 million barrels lower than a year ago and 304 million barrels below the five-year average. At the same time, the reserves of oil increased by 12.9 million barrels, while the balance of oil products decreased by 2.8 million barrels.