Oil prices rise on strong global demand forecasts

The Organization of the Petroleum Exporting Countries (OPEC) gives forecasts for global oil demand for 2022-2023. The world's largest economies are better than expected, despite rising inflation, as published data says.

In a monthly report, OPEC noted 2022 to increase oil demand by 3.1 million barrels per day, while 2023 would witness a 2.7 million surge. These indicators were mentioned during a previous statement for the first time. Since then the forecasts have remained unchanged.

“Fluctuations in oil prices symbolize supply shortages are still a major problem in the physical markets. This is especially evident after the positive forecasts of OPEC,” claimed Tina Teng, an analyst at CMC Markets.

Oil prices have also received support from Biden administration messages considering replenishing the U.S. strategic oil reserve, as well as low market expectations for resuming the West's nuclear deal with Iran in 2015, analysts at ANZ Research said.