OPEC expects lower oil demand, urges members to remain vigilant

Demand for oil in the coming months will equal production from fossil fuels, oil cartel OPEC expects in its latest forecast. The Organization of the Petroleum Exporting Countries had previously projected a significant oil deficit in the first quarter. OPEC sees a lot of uncertainty and is calling on its members to remain “vigilant and cautious.”

Doubts are growing whether China can move away from the strict coronavirus rules it has used for nearly three years. Also, there may still be a slowdown in the US as expected in the EU. Various sanctions against Russia have not yet caused a drop in the country’s oil production.

OPEC now expects to pump an average of 29 million barrels of oil per day in the first three months of the year. That’s slightly higher than the average of 28.8 million produced each day in November. The oil cartel expects oil demand to fall by 2.2 million barrels per day next year. At the same time, non-OPEC countries will produce 1.5 million barrels per day more. The United States accounts for three-quarters of that surplus oil.