Opec+ sees bigger 2022 surplus amid slower demand growth

OPEC+ sees a surplus of 1.9 million barrels per day (bpd) in 2022, 600,000 bpd higher from a previous forecast, amid expectations of slower demand growth this year, a report seen by Reuters showed on Wednesday.

The report, prepared ahead of a meeting of the Opec+ Joint Technical Committee meeting scheduled for Wednesday, also sees OECD oil stocks slightly exceeding the 2015-2019 average in the fourth quarter.

The revision reflects a weaker oil demand growth forecast adopted by the Organization of the Petroleum Exporting Countries (Opec) in its April oil monthly report.

Opec now expects 2022 world oil demand to expand by 3.67 million bpd in 2022, down 480,000 bpd from its previous forecast.

The group cited the impact of Russia’s invasion of Ukraine, rising inflation as crude prices soar and the resurgence of the Omicron coronavirus variant in China as reasons for the revision. REUTERS