“OPEC +” raises its forecast for oil demand growth in 2022
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The "OPEC +" alliance of oil producers revised up its forecast for crude demand in 2022 ahead of a meeting to be held today, Wednesday, at a time when the alliance faces pressure from the United States to increase production at a faster pace to contribute to supporting the global economy.
Two sources in "OPEC +" said that coalition experts revised their forecasts for oil demand growth in 2022 to 4.2 million barrels per day, up from a previous forecast of 3.28 million barrels per day.
Reuters quoted 4 sources in "OPEC +" as saying that the alliance's focus remains on increasing oil production per month by 400,000 barrels per day, despite an upward revision of demand expectations.
Oil prices recovered today, Wednesday, after a sector report showed that US crude stocks fell more than expected last week, raising prices after losses last night as a result of the repercussions of Hurricane Ida on American refineries.
The rise in crude prices comes, before the OPEC + meeting scheduled at 1500 GMT; The group, which includes members of the Organization of Petroleum Exporting Countries (OPEC), Russia and allies, is likely to adhere to a plan to add 400,000 barrels per day to the market every month until December.
Avtar Sandu of Phillips Futures said that the American Petroleum Institute report issued yesterday, which showed a more-than-expected decline in US crude inventories, supports prices.
Two market sources, citing figures from the American Petroleum Institute on Tuesday, revealed that crude stocks fell by four million barrels over the week ending on August 27.
Ahead of the US Energy Information Administration's weekly report due at 14:30 GMT, analysts in a Reuters poll expected inventories to fall by 3.1 million barrels, but pressure on US crude prices is expected to continue with the gradual recovery of oil and gas production in the Gulf of Mexico, Analysts said that the refineries' return to normal operation will take longer.