OPEC predicts slower oil demand growth in 2023

The Organization of the Petroleum Exporting Countries said in its monthly report that it expects global demand to increase by 2.7 million barrels per day (bpd) in 2023. It is keeping its forecast for this year unchanged at 3.36 million barrels per day.

Global oil consumption, which fell in 2020 due to the pandemic, is expected to exceed 2019 levels this year, but a sharp rise in oil prices and restrictions in China in recent months should slow growth.

In 2023, the outlook for healthy global economic growth amid an improving geopolitical situation, combined with an expected improvement in China’s control of COVID-19, should boost oil consumption.“, estimates OPEC in its report.

Its forecast for next year is based on the assumption of non-escalation of the conflict in Ukraine and a limited impact of inflation on economic growth.

OPEC and its allies, including Russia, grouped under the name “OPEC+”, have been steadily increasing their production after cutting it significantly in 2020. But their drawdown has been regularly below targets in recent months as a result of reduced investment in recent years. in some member countries and difficulties in the Russian oil sector.

The July report shows that total OPEC production rose by 234,000 barrels per day in June to 28.72 million barrels per day.

Elliot Frost

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