After OPEC Cut Production Quotas Falling Global Oil Demand Negates Price Advantage

After OPEC cut production output quotas, global oil demand fell yet again.

Significant global economic uncertainties in the coming months made OPEC cut on Monday its estimate of global oil demand growth for this year and next, in the fifth reduction of consumption forecasts since April.

OPEC revised down each of its 2022 and 2023 oil demand growth forecasts by 100,000 barrels per day (bpd) from last month’s estimates due to China’s still-strict Covid policy and economic challenges in Europe, the organization said in its Monthly Oil Market Report (MOMR) out on Monday.  

Falling demand is negating OPEC's efforts to bolster and boost oil prices.

West Texas Intermediate has dropped on the month.

Even heating oil dropped recently.

Is energy price inflation fading?