Opec cut its forecast for global crude demand this year

The Organization of Petroleum Exporting Countries (Opec) on Tuesday lowered its forecast for global crude oil demand this year, mainly due to the adverse impact of the Conflict between Russia and Ukraine.

Opec released its latest monthly report on the oil market on Tuesday, predicting global oil demand this year at 100.5 million b/d, down 400,000 b/d from its previous forecast. Opec cut its forecast for global economic growth in 2022 to 3.9% from 4.2% a month ago and said further cuts were possible, taking into account the impact of the Russia-Ukraine conflict and the pandemic. According to third-party data, Opec's 13 members increased output by 57,000 b/d to 28.56 million b/d in March.

Opec also expects non-OPEC oil production to reach 66.26m b/d this year, down 300,000 b/d from its previous forecast. Russia's output is expected to fall by 500,000 BPD to 11.2 million BPD. Opec and non-OPEC producers agreed on March 31 to maintain their original modest production increase in May, raising total monthly output for May by 432,000 barrels a day.