The U.K. and the U.N. report that global demand for oil has been declining and the world is in “disaster,” with world oil supply expected to fall to less than 1.2 million barrels per day (bpd) by the end of next year, a decline of more than 3 percent from the year before.
A report by Bloomberg said global oil demand was falling to just over 1.1 million bpd in 2022, the lowest level since 1990.
and Bloomberg said the global demand picture for oil will remain “unstable.”
said global supply growth in 2022 will be lower than in 2021 and 2019, while the world’s remaining oil demand is expected to decrease to 1.9 million bps in 2022 and 1.6 million bp in 2019.
Bloomberg said that oil demand could fall to around 1.8 million bpm in 2020.
The Bloomberg report comes just weeks after OPEC met to try to reduce the OPEC-led cartel’s pressure on oil prices.
The group, led by Saudi Arabia, has been pushing for a reduction in its price target of $70 a barrel to $50 a barrel, to support a global price recovery that could put pressure on world oil supplies.
The report by the two main oil markets is based on an analysis of forecasts by oil traders and independent analysts.
The outlook for world oil demand for the year was more pessimistic than previously reported, with the outlook for global demand likely to fall below the 1.7 million bpa average for the first time since 2011, Bloomberg said.
It said that while oil demand growth in the world will likely continue to decline in the years ahead, global oil production will likely rise by about 1.5 million bpc to more than 7.5 mbpd by the year 2022.
Oil prices fell below $40 a barrel in September and have since recovered to $45.
Brent crude, the world market benchmark, fell as low as $35.46 a barrel on Tuesday, the highest level since September 2018.
The Organization of the Petroleum Exporting Countries said last week that oil supplies in 2021 will likely reach 2.6 mbps of global production, down from 2.8 mbpc in 2021.
The organization also said that world demand for crude oil will likely remain in decline for the foreseeable future.
“Despite significant increases in global oil consumption over the past few years, world demand is forecast to continue to fall as the global economy slows and inflation pressures continue to mount,” the report said.
The global oil market will likely grow in 2022 by about 3 percent to 3.4 million bbpd, while demand for petroleum products is forecast by the group to decline by 3.3 percent to 2.5 percent.
The OPEC-linked cartel is pushing for OPEC’s oil production cut to 2 million bbp.