OPEC Projects World Oil Demand Growth to Increase by Around 3.7 mb/d. The Organisation of Petroleum Exporting Countries (OPEC) has projected world oil demand growth to increase by around 3.7 mb/d to average 100.5 mb/d in 2022.
The Punch reports that OPEC stated this in a statement to the International Monetary and Financial Committee meeting of ministers and governors for April 2022.
OPEC opined that oil prices had been on ascendancy, specifically since March this year, noting that Brent crude, the global oil benchmark, had averaged near $98/barrel in the first quarter 2022, about $18 higher than its value in the fourth quarter 2021. This, it attributed to the ongoing escalating geopolitical tensions in Eastern Europe and the disruptions it has caused in supplies of products.
World oil demand is estimated to have recovered significantly in 2021, rising by 5.7 million barrels/day. In absolute terms, world oil demand is estimated to have reached 96.8 mb/d last year, ” OPEC said.
“In 2022, world oil demand growth is expected to continue recovering and to increase by around 3.7 mb/d to average 100.5 mb/d.”
According to OPEC, the demand growth in 2022 will be driven mainly by the transportation sector, adding that oil market conditions has shown improvement since October 2021, despite the outbreak of Omicron variant.
“Petrochemicals and transportation will be sectors of the economy that will require more oil in 2022. Gasoline demand is forecast to be supported by rising vehicle sales while expansion in the petrochemical industry and steady petrochemical margins will support light distillates in 2022,” it stated.
“Oil market conditions showed further improvement since the last IMFC in October 2021, despite the outbreak of new COVID-19 strains, including Omicron.
“However, more recent developments related to the geopolitical developments witnessed in Eastern Europe, along with the COVID-19 pandemic, particularly in China, raised uncertainty regarding the global economic outlook,” the organisation added.
