OPEC Lowers The Forecast For Oil Demand In World Economy

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Oil Demand In World Economy

OPEC(Organization For Petroleum Exporting Country) expects a downward trend in oil prices in the upcoming months and years. Most of the world’s oil-producing countries are not in good condition to produce oil at a rapid pace.    

In the year 2022, the estimated growth rate of oil purchase is 3.1 percent compared to 3.5 percent as estimated in the previous three months. There are several reasons for such a downward oil demand trend this year. 

Reasons For The Low Oil Forecast Demand In 2022 

There are multiple reasons for such low oil demand forecast in 2022. But, first, you must consider some of the core economic downturns in oil prices in 2022. You cannot ignore facts as they contribute to these types of happening in the world. 

  • Weaker growth in the second quarter in some of the world’s major economies has contributed to such a situation. 
  • After May, it was expected to grow to 3.9, but unfortunately, it lowered to 3.5. You cannot skip the fact that there is a global crisis right now. 
  • The oil-producing countries are now focusing on meeting their daily needs rather than exporting their oil to OPEC member countries. 
  • The global disturbances are due to the presence of the Russia-Ukraine War and the participation of the member countries of OPEC in it. 
  • To meet the demand of the ordinary people, countries are now reducing their oil exports to OPEC countries. 
  • It is a big blow to the Oil price rises in the member countries. 
  • The European nations are the worst sufferers due to this fact, as they require both oil and gas in the upcoming winter season to survive. 

You must consider the above factors while you want to get the required lowering of the oil prices in 2022. A price hike will be possible when there is a higher demand for it.

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Arnab Das is a passionate blogger who loves to write on different niches like technologies, dating, finance, fashion, travel, and much more.

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