Opec says high energy prices to dampen fourth quarter demand

OPEC on Thursday cut its world oil demand forecast for the last quarter of 2021 due to high energy prices, although the group stuck to its prediction of robust growth to above pre-pandemic rates in 2022.

The Organization of the Petroleum Exporting Countries (Opec) said in a monthly report it expects oil demand to average 99.49 million barrels per day (bpd) in the fourth quarter of 2021, down 330,000 bpd from last month’s forecast.

Oil prices have surged this year to a three-year high above $86 a barrel as Opec and its allies, known as Opec+, gradually ramp up supplies and as demand recovers from the pandemic. Natural gas and coal prices have also soared.

Opec also said it expects world oil demand growth of 4.15 million bpd next year, unchanged from last month, which will push world consumption above 2019 levels.