OPEC Commemorates EIA’s Cautionary Oil Demand Outlook – Investing.com

OPEC Commemorates EIA’s Cautionary Oil Demand Outlook – Investing.com

Oil prices are resilient above the $80-per-barrel mark since early October. The strength of the U.S. dollar and the bearish OPEC monthly oil market report and the possibility of the U.S. withdrawing from its strategic petroleum reserves (SPR) all still didn't push prices below the $80 mark. 

OPEC’s monthly report is commemorating the earlier U.S. energy information administration (EIA) monthly short-term energy outlook (STEO), which was perceived bearish for the 2022 global oil markets.

Both monthly reports came with a cautionary oil demand outlook, but they both didn’t thoroughly take into consideration that the return of air travel might result in stronger-than-expected oil demand growth for 2022.

OPEC cut its oil demand for the fourth quarter this year by 330,000 barrels per day (bpd). This might imply a lower oil demand growth for 2022, hinting that oil prices might be turbulent as a result of supply and demand swing out of balance. 

OPEC expects global oil demand growth of 4.15 million bpd in 2022 reaching 100.6 million bpd unchanged from last month. The OPEC forecast for the fourth quarter this year was bearish, as the higher oil prices will dampen oil demand in line with rolling over OPEC+ producers