OPEC upbeat on 2022 oil demand, says Omicron impact to be mild

OPEC maintained its forecast that world oil demand will grow by 5.65 million bpd in 2021, after last year's historic decline at the start of the pandemic.

Reuters

December 13, 2021 / 18:36 IST

Source: Reuters

OPEC on Monday raised its world oil demand forecast for the first quarter of 2022 but left its full-year growth prediction steady, saying the Omicron coronavirus variant would have a mild impact as the world gets used to dealing with the pandemic.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report it expects oil demand to average 99.13 million barrels per day (bpd) in the first quarter of 2022, up 1.11 million bpd from its forecast last month.

ALSO READ: Oil rises 1% ahead of OPEC meeting under Omicron cloud

"Some of the recovery previously expected in the fourth quarter of 2021 has been shifted to the first quarter of 2022, followed by a more steady recovery throughout the second half of 2022," OPEC said in the report.

"Moreover, the impact of the new Omicron variant is projected to be mild and short-lived, as the world becomes better equipped to manage COVID-19 and its related challenges."

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