OPEC slashed its global crude oil demand outlook for a second consecutive month, citing slowing economic activity in the United States and Europe as well as ongoing pandemic-related lockdowns in China and geopolitical upheaval linked to Russia’s war in Ukraine.

In its closely watched monthly market report, the cartel on Monday lowered its forecast for global oil demand growth this year by 100,000 b/d to 2.5 million b/d. It lowered its 2023 growth outlook by the same amount to 2.2 million b/d. This followed a downgrade a month earlier.

OPEC also dropped its estimate for the amount of crude it would need to pump to meet demand in the current quarter by 520,000 b/d. That followed a similar downgrade a month earlier and furthered the case for the group’s move this month –...