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Fast-rising prices for oil likely will slow demand in some of the world’s largest economies in the next few months, the Organization of Petroleum Exporting Countries said in its 10 November monthly market report.
World oil use will expand by 5.7 million barrels per day this year overall, 160,000 barrels less than OPEC predicted in October, and put 2021 demand at 96.4 million barrels per day.
China and India will use less oil as costs rise, OPEC predicted, and as China deals with power outages, slowdowns in manufacturing, and isolated COVID-related shutdowns.
Rising prices also will force emerging nations to burn less petroleum, hampering their economic recoveries from the COVID War and risking their ability to make payments on their massive debts.
Fuel supplies have failed to keep pace with surging demand during the global economic recovery, forcing prices higher and jeopardizing economic activity around the world.
In Europe, natural gas prices have shot up 250 percent in some areas, curtailing or closing factory production in Germany and the U.K. and crimping consumer spending, as we reported in “Will Surging Gas Prices Sink U.K., E.U. Economies?” (21 Sep 2021).
However, oil demand in 2022 will exceed pre-COVID volumes, OPEC said, holding to its previous forecast that world demand will rise by 4.2 million barrels a day next year.
Non-OPEC oil-producing countries will pump three million barrels a day more next year, the cartel forecast.
OPEC also did not alter its forecast for global economic growth at 5.6 percent this year and 4.2 percent in 2022 .