RIYADH: Saudi premier investment management and advisory firm, Jadwa Investment, has revised down global oil demand growth for 2022 by 12 percent, according to a statement.
The advisory firm has raised its Brent oil forecast for 2022 to $102 per barrel.
This comes despite OPEC data revealing that global oil demand has surged 5.3 percent in the first quarter of 2022 year-on-year.
OPEC’s current outlook is grounded on the assumption that the war between Russia and Ukraine will potentially ease off during the second half of the year.
OPEC+ supply fell short of targets during Q1 of 2022. This is projected to further exacerbate due as Russia’s oil output declines steadily, as a result of economic sanctions, voluntary self-sanctions, and termination of Western firms’ long-term contracts.
The release of 240 million barrels of oil from the International Energy Agency member’s strategic reserves over the next six months is alleviating the risk of additional substantial oil price hikes in the near term.
Other developments that are currently also contributing to curbing oil price hikes include Chinese oil demand being affected by lockdowns, as well as the downside risk associated with oil demand because of slow economic growth.