- OPEC slashed oil demand outlook on Tuesday on signs of global uncertainty.
- The cartel now predicts demand will be roughly 380,000 barrels a day below previous estimates.
- “The year 2023 is expected to remain surrounded by many uncertainties, mandating “vigilance and caution,” OPEC said.
OPEC slashed its oil demand outlook on Tuesday, citing mounting global uncertainties while recommending “vigilance and caution” to member countries.
The cartel now forecasts oil demand will be 380,000 barrels per day below previous estimates in the first quarter of 2023. It is expecting oil demand for the full year to grow by 2.2 million barrels per day, equaling an average of 101.77 million barrels per day.
“The year 2023 is expected to remain surrounded by many uncertainties, mandating vigilance and caution,” OPEC said in its monthly report.
In October, OPEC announced a 2 million barrel per day supply cut, which drew the ire of the Biden Administration and criticism that the cartel is seeking to benefit from elevated oil prices. The latest fall in demand outlook serves as further justification for the October supply cut.
Earlier in December, OPEC agreed to keep the supply picture largely unchanged in the early months of 2023 in order to weigh the full ramifications of the previous cuts. OPEC also noted that rivals will bring 1.5 million bpd to market next year, with 75% of that coming from the US.
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