OPEC Lowers Its Forecast For Surplus Global Oil Supplies in Q1

OPEC lowered its forecast for the excess supply of oil in global crude markets during the current quarter, a day before the group’s meeting scheduled for tomorrow, Tuesday.

And according to internal research conducted by the group and its allies on Monday and reported by the “Bloomberg” agency, the oil supply surplus may reach 1.4 million barrels per day in the first three months of 2022, a level about 25% lower than its forecast in December.

The report indicated that the overall picture for 2022 is slightly more robust as a result of expectations of a greater recovery in demand levels, as it seems that the average surplus of supplies may record 1.4 million barrels per day in 2022, compared to previous estimates of 1.7 million barrels per day.

Also, “OPEC +” expects that the impact of the “Omicron” strain on the oil market will be limited and temporary.