By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has increased its outlook for global oil demand in the medium and longer terms.
The group said in its 2022 World Oil Outlook released on Monday that the demand for the commodity would increase to 103 million barrels per day next year—an increase of 2.7 million barrels per day from 2022 and an increase of 1.4 million barrels per day from what the group predicted for 2023 last year.
OPEC raised its oil demand outlook for the medium term as well, through 2027, increasing the outlook by 2 million barrels per day by the end of that period, compared to what the group forecasted last year.
The reason for the bump in how the group sees world oil demand is the more robust recovery seen this year and next and the shift in focus from energy transition to energy security.
OPEC now sees oil demand hitting 108.3 million barrels per day in 2030, also up from what it predicted for 2030 last year. In the longer term, OPEC sees 2045 global oil demand hitting 109.8 million barrels per day, up from the 108.2 million barrels per day that it forecasted last year.
OPEC sees its market share rising but sees OPEC’s output lower in 2027 than in 2022.
Earlier last month, its closely-watched Monthly Oil Market Report (MOMR), the cartel revised down its estimate of global oil demand growth for 2022 by 460,000 barrels per day, citing China’s Covid lockdowns, economic headwinds in developed economies and inflationary pressures everywhere.
In the report, OPEC saw world oil demand growing by 2.6 million barrels per day this year to an average of 99.7 million barrels per day.
In that report, the cartel also slashed its oil demand growth forecast for 2023 by 360,000 barrels per day, expecting growth at 2.3 million barrels per day next year.
Business Post reported that OPEC+ agreed to cut production targets by 2 million barrels per day at its latest meeting on October 5.
Dipo Olowookere