The Organization of the Petroleum Exporting Countries (OPEC) cut its projections for crude oil production needed in the fourth quarter. A look that confirms the legitimacy of the production cut announced last week and caused controversy.
In its monthly report, OPEC said it cut its forecast for oil production needed in the fourth quarter by 440,000 barrels per day. The outlook for global demand growth for the same period was revised downward by 900,000 barrels per day.
“OPEC Plus”, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and non-member oil-producing countries, announced on the 5th that it would cut production quotas by 2 million barrels per day, and President Biden and other US officials strongly opposed it. invited. The consumption outlook cut this time provides clues to understanding the motivations for this decision.
“With slowing global growth, risks are sloping to the downside,” OPEC Research said in a monthly report. In addition to the possibility that the new coronavirus infection may spread once more in China and other countries, the oil market may not show a seasonal increase in consumption, he said.
Original title:OPEC Trims Oil-Demand Outlook, Making Case for Its Supply Cut(excerpt)