Global crude oil news: Prices tumble as OPEC lowers demand prediction

15 Nov 2022 , 08:15 AM

Tuesday’s early Asian trading saw oil prices widen their losses as OPEC lowered its prediction for global demand in 2022, while an increase in COVID-19 cases in China placed doubt on expectations for fuel consumption in the world’s largest buyer of petroleum.

After finishing down 3% on Monday, Brent crude futures were down 39 cents, or 0.4%, at $92.75 a barrel. After falling 3.5% in the previous session, U.S. West Texas Intermediate crude was trading at $85.31 a barrel, down 56 cents or 0.7%.

For the seventh time since April, the Organization of the Petroleum Exporting Countries (OPEC) has lowered its projection for the increase of the world’s oil consumption in 2022, citing worsening economic difficulties such as high inflation and rising interest rates.

As a result of a consistent worsening in purchasing manager surveys in recent months, the International Monetary Fund reported on Sunday that the global economic outlook has become gloomier than forecast last month.

The Permian Basin’s oil production is also anticipated to reach a new high of 5.499 million barrels per day (bpd) in December, according to a report released on Monday by the U.S. Energy Information Administration (EIA).

The EIA reported that despite a spike in prices, overall U.S. crude oil production in shale regions increased by just 91,000 bpd to 9.191 million bpd in December as a result of ageing shale regions producing less crude oil per well.

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