In its March Monthly Oil Market report OPEC left its forecasts for global growth unchanged at 4.2% though noting that this number is “under assessment and, will be reviewed and adjusted, when there is more clarity on the far-reaching impact of the geopolitical turmoil” of the moment.
The report also expects world oil demand growth to remain at 4.2 million barrels per day, with 1.9 million barrels per day of demand growth coming from OECD countries and 2.3 million barrels per day coming from non-OECD countries.
The main drivers of liquids supply growth are expected to be the United States and Russia, followed by Canada, Brazil, Kazakhstan, Guyana and Norway.
The reports notes that the conflict in Ukraine has led to rising commodity prices contributing to global inflation.
“The effects of the conflict and especially the impact of rising inflation, if sustained, will lead to a decline in consumption and investments to varying degrees. Finally, financial conditions of the various asset classes are impacted, such as in currency markets, equities and an ongoing repricing of debt,” note the report’s authors.
OPEC notes that in light of the volatility of the market the safeguarding of market stability will be paramount to both oil producing and consuming countries.