OPEC lowers growth forecast for global oil demand

OPEC has lowered its growth forecast for global oil demand.

In the current year, global demand for crude oil is expected to increase by an average of 5.8 million barrels (on barrel is 159 litres) per day, according to OPEC’s monthly report published in Vienna, on Wednesday.

Previously, OPEC experts had expected a growth of 5.96 million barrels. It now assumes that 99.82 million barrels per day will be needed worldwide in the fourth quarter.

As a reason for the somewhat lower growth forecast, OPEC experts pointed to lower consumption data than expected in the first nine months of the year.

Stronger demand is not expected again until the last quarter of the year, with the experts pointing to the petrochemical industry and higher demand for heating oil.

Recently, oil prices worldwide have risen sharply and have reached multi-year highest levels above the $80 dollar per barrel mark. The reasons given for the price increase are insufficient supply.

Oil has also become more expensive in the wake of rising prices for natural gas.

In spite of the rising oil prices, the oil states in the OPEC+ group, an alliance between OPEC and other producers led by Russia and Saudi Arabia, have agreed to raise its daily production by 400,000 barrels in November as planned.

The oil market had previously speculated on a stronger increase in production.