The Organization of the Petroleum Exporting Countries (OPEC) has lowered its forecast for the world oil demand for the fourth quarter of 2021, saying already high energy prices would dampen the demand for the rest of this year.
In a monthly report released on Thursday, Nov. 11, OPEC said it expects the global oil demand to average 99.49 million barrels per day (bpd) in the October-December quarter or 330,000 bpd lower from the forecast issued last month.
The organization explained that high oil prices would weaken the global economic recovery and dampen energy demand in the fourth quarter, in addition to slower-than-anticipated demand from China and India.
“A slowdown in the pace of recovery in 4Q21 is now assumed due to elevated energy prices,” OPEC said in the report.
OPEC now expects the world’s total oil demand will reach 96.4 million bpd in 2021, compared to 90.8 million bpd in 2020.
However, the organization maintained its prediction for 2022, saying the demand would see robust growth to above pre-pandemic rates next year.
OPEC expects the world oil demand to increase 4.15 million bpd next year, unchanged from last month, pushing world consumption to 100.6 million bpd, around 0.5 million bpd above 2019 levels.
After having surged to a three-year high above $86 a barrel earlier this year, Crude oil prices slipped to below $83 a barrel on Friday. Oil fell sharply on Thursday after data showed that annual inflation accelerated in October to 6,2%, the highest in nearly 31 years.
Soaring energy prices were a significant factor pushing up inflation in the United States, with energy prices increasing 4.8% over the month in October and 30% over the year.