OPEC cut its global oil demand outlook for the last quarter of 2021 as high energy prices hamper the recovery from COVID-19, slowing down return to pre-pandemic levels of oil.
CL1! UP +1.07%, USOIL up +0.52%
The Organization of the Petroleum Exporting Countries in a monthly report also upgraded its supply forecast from U.S. shale producers in 2022 to balance the market.
OPEC stated it expects the oil demand to hover around 99.49 million barrels per day (bpd) in Q4 of 2021, down 330,000 bpd prior month’s forecast. The year’s demand growth forecast was cut by 160,000 bpd to 5.65 million bpd.
OPEC stated that a slowdown in the rate of recovery in Q4 of 2021 is now assumed due to the high energy prices. OPEC also reported slower-than-anticipated demand in China and India contributed to the downward revision.
Oil has risen to a three-year high past $86 a barrel this year as OPEC+ slowly increases supplies and demand soars, boosting pump prices to the highest level in years.