OPEC raises its forecast for this year’s oil demand, says speculators are driving prices down

The Organization of the Petroleum Exporting Countries (OPEC) today slightly raised its forecast for growth in global oil demand this year. In its monthly report, it also said that the oil market remains relatively strong and that speculators are behind the current decline in oil prices.

The price of North Sea Brent crude climbed to a high for the year of nearly 98 dollars per barrel in September, but has fallen significantly since then and is now trading at around 82 dollars per barrel. Neither production cuts by the OPEC cartel and its allies nor the conflict in the Middle East have prevented the decline.

„Oil prices have been trending downward in recent weeks, mainly because of speculators,“ OPEC said in its report today.

According to the cartel, oil demand remains solid despite „excessively negative sentiment“.

OPEC today forecast that global oil demand will increase by 2.46 million barrels per day this year. In October, it had forecast growth in demand of 2.44 million barrels per day for this year. The cartel continues to expect demand to rise by 2.25 million barrels per day next year.

OPEC Secretary General Haitham Al Ghais predicted last week that the global economy would be able to cope with macroeconomic challenges such as high interest rates and inflation, and that its growth would support demand for fuels.

The OPEC+ group, which comprises the OPEC cartel and its allies led by Russia, has been limiting production since last year. It describes this approach as a precautionary measure to ensure stability in the oil market. The group will decide on the future course of its production policy at the end of November.