OPEC Remains Stuck to last month announced Optimistic Outlook

OPEC has stuck to its forecast for strong growth in terms of the global oil demand, in 2022, despite the Omicron variant, and expected interest rate increases, pointing that the oil market to remain well supported, all through the current year.

In its monthly report, it expected global oil demand to rise by 4.15 million barrels per day this year, unchanged from its forecast last month.

“Monetary policy measures would not impede the momentum of basic global economic growth,” it added.

On the other hand, the global consumption is expected to exceed 100 million barrels per day, in the Q3, in line with last month’s forecast.

While on an annual basis, according to OPEC, the world have consumed more than 100 million barrels per day of oil, in 2019, it added.

“While the novel mutating Omicron variant may have an impact, during the 1^st half of 2022, depending on any further lockdown measures and increased hospitalization levels, affecting the workforce, the outlook for economic growth remains strong,” OPEC elaborated.

At its last meeting, OPEC+ alliance have agreed to increase monthly output by 400,000 barrels per day, in February.

The report showed that OPEC production, in December, has risen by 170,000 barrels per day to 27.88 million, too much lesser than what was allowed, under the accord.