OPEC Foresees Brighter Second Half for Oil Demand, Economy

Despite the outlook for continued economic growth and rising oil demand this year, OPEC also warned of significant downside risks.

Pietro Donatello Pitts, Hart Energy
OPEC Foresees Brighter Second Half for Oil Demand, Economy

Global oil demand is expected to rise by 3.4 million bbl/d in 2022, while “improving mobility in major economies, as well as seasonal containment of the pandemic is projected to support gasoline and distillate demand,” OPEC said in its monthly oil market report. (Source: Hart Energy, Shutterstock.com)

OPEC foresees continued economic growth this year despite numerous headwinds and global oil demand rising in the second half of 2022 compared to the first half of the year.

“Consumption remains robust, especially in the advanced economies, with an expected continued recovery particularly evident in the contact-intensive services sector, which includes travel and transportation activity, leisure and hospitality,” OPEC announced in its June 2022 Monthly Oil Market Report.

“However, significant downside risks prevail, stemming from ongoing geopolitical tensions, the continued pandemic, rising inflation, aggravated supply chain issues, high sovereign debt levels in many regions and expected monetary tightening by central banks in the U.S., the U.K., Japan and the eurozone,” the organization warned. 

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