OPEC Flags Risk to Oil Demand Outlook from Ukraine War, Inflation

OPEC said the war in Ukraine and continued concerns about COVID-19 would have a negative short-term impact on global oil demand growth.

Alex Lawler, Reuters

OPEC said on March 15 that oil demand in 2022 faced challenges from Russia's invasion of Ukraine and rising inflation as crude prices soar, increasing the likelihood of reductions to its forecast for robust demand this year.

Oil prices shot above $139 a barrel this month, hitting peaks not seen since 2008, as Western sanctions tightened on Moscow over its invasion of Ukraine and disrupted oil sales from Russia, helping to fuel inflation that was already rising.

In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) stuck to its view that world oil demand would rise by 4.15 million barrels per day (bpd) in 2022 and increased its forecast of global demand for its crude.

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