OPEC leaves 2022 forecast for oil-demand growth unchanged, bumps up 2021 estimate

The Organization of the Petroleum Exporting Countries on Thursday left its forecast for oil-demand growth in 2022 unchanged at 4.2 million barrels a day. In a monthly report, the cartel tweaked its estimate for demand growth in 2021 by 17,000 barrels a day to 5.7 million barrels a day, mainly due to better performance in the U.S. For 2022, OPEC expects oil demand in the Organization for Economic Cooperation and Development, a group made up of mostly wealthy nations, to grow by 1.8 million barrels a day, while non-OECD demand is seen up 2.3 million barrels a day. In OECD countries, optimism is based on expectations the supportive effects of fiscal and monetary policies will more than offset the negative effects of the omicron variant of the coronavirus on demand, while industrial activities are expected to accelerate and mobility has recovered “substantially, with domestic, regional and international flights already showing signs of recovery,” OPEC said. Oil futures remained higher, with West Texas Intermediate crude for March delivery CL00, +0.77% CLH22, +0.77% up 68 cents, or 0.8%, at $90.34 a barrel on Nymex, while April Brent crude BRN00, +0.58% rose 55 cents, or 0.6%, to $92.10 a barrel on ICE Futures Europe.