OPEC says high prices to dampen pace of oil demand recovery | Reuters

OPEC says high prices to dampen pace of oil demand recovery | Reuters

OPEC on Thursday cut its world oil demand forecast for the last quarter of 2021 as high energy prices curb the economic recovery from COVID-19, although the group stuck to its prediction of robust growth to above pre-pandemic rates in 2022.

The Organization of the Petroleum Exporting Countries in a monthly report also raised its forecast for supply from U.S. shale producers next year, a potential headwind to the efforts of the group and its allies to balance the market.

OPEC said it expects oil demand to average 99.49 million barrels per day (bpd) in the fourth quarter of 2021, down 330,000 bpd from last month's forecast. The year's demand growth forecast was trimmed by 160,000 bpd to 5.65 million bpd.

"A slowdown in the pace of recovery in the fourth quarter of 2021 is now assumed due to elevated energy prices," OPEC said in the report. OPEC also cited slower-than-expected demand in China and India for the downward revision.