BAKU, Azerbaijan, May 20. Oil demand in the region of the Organization of Economic Co-operation and Development (OECD) will be hit hardest by geopolitical risks, Trend reports with reference to Oxford Institute of Energy Studies (OIES).
“Risks to the demand outlook are tilted to the downside. For 2022, geopolitical and growth risks could depress demand growth by another 0.3 mb/d. OECD demand could be hit the hardest accounting for 65% of total declines, with middle distillates and gasoline demand appearing the most severely affected, particularly in Europe and the US,” the OIES said in its latest report.
Global oil demand growth is revised lower by 0.3 mb/d to 2.3 mb/d in 2022 and remains relatively unchanged to 1.5 mb/d in 2023. The report reveals that downward revisions in 2022 reflect mainly the weakness in China’s demand growth from the strict COVID lockdowns, which is downgraded to 0.2 mb/d in 2022 coupled with inflation pressures downplaying growth expectations in EMs and leading to another y/y downgrade in other non-OECD demand by 0.14 mb/d.
Overall, global demand growth is expected to soften y/y to 0.9 mb/d in H2 2022 from 3.7 mb/d in H1.
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