OPEC forecast for 2022 remains unchanged

OPEC said on Tuesday that the forecast for world oil demand growth remains unchanged at 4.2 mb/d, with total global consumption at 100.8 mb/d, despite the Omicron coronavirus variant. 

“While the impact of the Omicron variant is projected to be mild and short-lived, uncertainties remain regarding new variants and renewed mobility restrictions, amid an otherwise steady global economic recovery,” OPEC said in its monthly report. 

The Organization of the Petroleum Exporting Countries (OPEC) issues its report as oil prices have reached the highest since 2014. 

"The oil market is expected to remain well-supported throughout 2022,” they said. 

The bloc said in the report that central banks could respond to rising inflation rates by tightening monetary supply. They said; however,  the expected increase in the interest rate will come as demand for transportation fuels also rises which offsets the impact.

"Monetary actions are not expected to hinder underlying global economic growth momentum, but rather serve to recalibrate otherwise overheating economies," the bloc wrote.

"However, as long as COVID-19 in combination with the challenges of supply-chain bottlenecks and inflation will impact the global economic momentum, a volatile growth pattern will remain," they added.

The bloc said that in December their crude oil production increased by 0.2 mb/d m-o-m, to average 27.9 mb/d.

OPEC said they expect demand for OPEC crude in 2022 to stand at 28.9 mb/d, around 1.0 mb/d higher than in 2021.