OPEC Raises Medium and Longer Term Oil Demand Forecasts

OPEC raised its forecasts for world oil demand in the medium-and longer-term in their 2022 World Oil Outlook released on Monday

• They said $12.1 trillion of investment is needed to meet this demand despite the energy transition. This was an increase from last year's estimate.
• "Chronic underinvestment into the global oil industry in recent years, due to industry downturns, the COVID-19 pandemic, as well as policies centred on ending financing in fossil fuel projects, is a major cause of concern." according to OPEC Secretary General Haitham Al Ghais
• The report said world oil demand will reach 103mbpd in 2023, up 2.7mbpd from 2022 and up 1.4mbpd from last year's forecast.
• OPEC also raised its demand to 2027, by almost 2mbpd compared to last year’s forecast. The upward revision reflects a more robust recovery in 2022 and 2023 and a "strong focus on energy security issues" leading to a slower substitution of oil by other fuels.
• OPEC sees world demand averaging 108.3mbpd by 2030, and 109.8mbpd by 2045 up from 108.2mbpd forecast in 2021. OPEC expect world demand will plateau after 2035.
• The report sees OPEC output in 2027 lower than in 2022 as non-OPEC supply grows but still see their market share rising.