OPEC cuts oil demand, global growth forecasts

The Organisation of the Petroleum Exporting Countries (OPEC) on Wednesday downgraded sharply its forecasts for global economic growth and crude oil demand.

In its first report since the controversial decision to cut production by 2 million barrels a day, OPEC cut global gross domestic product forecasts to 2.7% from 3.1% this year and to 2.5% from 3.1% for 2023, blaming soaring inflation, interest rates and geopolitical turmoil.

Oil demand growth forecasts were cut by 460,000 barrels a day to 2.64 million barrels a day for 2022. For next year OPEC reduced the figure by 360,000 barrels a day to 2.34 million barrels.

It also predicted sharp downturns in growth for the US and eurozone economies. The cartel cut 2023 US economic growth to 0.8% from an earlier forecast of 1.7%, while the eurozone economy was tipped to grow by 0.3% compared with a previous estimate of 1.7%.

The key economy of China was also downgraded for 2022 to 3.1% from 4.2%.

Reporting by Frank Prenesti for Sharecast.com