OPEC Takes a More Bullish View of the Oil Market in 2022 By Bloomberg – Investing.com

OPEC Takes a More Bullish View of the Oil Market in 2022 By Bloomberg – Investing.com

(Bloomberg) -- There’s going to be an oil-supply crunch in the summer of 2022. At least that’s the latest view from the analysts at OPEC, and it stands in stark contrast to the other major forecasting agencies.

The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all increased their assessments of global oil demand growth next year. But while the increases made by the IEA and EIA were modest, the oil producer group’s revision was anything but. (See chart below.)

OPEC’s analysts now see global oil demand increasing by 4.15 million barrels a day in 2022, compared to the level expected for this year, an upward revision of 860,000 barrels a day from what they forecast a month ago. That compares with growth of 3.24 million barrels a day seen by the IEA and 3.64 million barrels by the EIA, up just fractionally from their August reports.

The upward revision isn’t uniform across the year, with the biggest increase — 1.33 million barrels a day — seen in the second quarter and the smallest — 310,000 barrels a day — in the fourth.

The stronger demand outlook is driven by more optimistic views