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Crude oil closes lower after OPEC cuts forecast for global oil demand fifth time since AprilThe world economy has entered a period of “significant uncertainty and increasing challenges” for global crude oil supplies.
Nymex crude oil delivered last month (CL1: COM) for December delivery settled -3.4% to $85.87/bbl, catching up with consecutive daily gains, while January Brent crude (CO1: COM) close the door -2.9% to $93.14/bbl.
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OPEC+ now sees growth this year at 2.55 million bbl/d, down 100K bbl/d from previous forecast, citing downside risks including high inflation, monetary tightening of major central banks, high levels of government debt in many regions, tightening labor markets and existing supply chain constraints, according to the group’s latest information. Monthly oil market report.
Next year, the group expects oil demand to grow by 2.24 million bbl/d, also 100K bbl/d lower than its previous outlook.
The report is the last before OPEC+ meets on December 4 to set policy.
Separately, the US Energy Information Administration said it predicts oil production in the Permian Basin rose 39k bbl/day in December to a record 5.49 million bbl/day.
Total US crude oil production is expected to increase by 91,000 bpd to 9.19 million bpd next month, the highest level since March 2020 at the start of the pandemic in the US.
COVID-19 cases spiked in China over the weekend, with Beijing and other major cities reporting record infections on Monday; Oil and other commodity prices rose on Friday after China relaxes some prevention and control measures for COVID.
