OPEC raises demand forecasts, oil recovers some of its losses

According to Reuters, oil prices reversed their recent declines Tuesday after OPEC raised its medium- and long-term demand forecasts and reiterated its willingness to help stabilize prices if necessary for markets.

Still, oil prices were still influenced by concerns about new COVID restrictions in China, the largest oil importer. In addition, traders are in no hurry to make big deals ahead of a number of central bank decisions this week.

The Organization of the Petroleum Exporting Countries (OPEC) argued in its "2022 World Oil Outlook" report that demand is expected to be higher in the medium to long term than previously thought, and is not expected to plateau until 2045.

In addition, oil prices have benefited from assurances from OPEC members that the cartel is willing to support prices.

Attention is now focused on the series of central bank interest rate decisions coming up this week, as market participants have expressed fears of a potential drop in demand as a result of higher interest rates.

The most important event of the week is the Federal Reserve's meeting on Wednesday. The central bank is expected to raise interest rates by 75 bps, but markets are still hoping for potential signals that the Federal Reserve plans to soften its hawkish stance.