Oil demand in 2023 will increase by 2.25 million barrels per day (bpd), or about 2.3%, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report, following growth of 2.55 million bpd in 2022. Both forecasts were unchanged from last month.
“Although global economic uncertainty is elevated and growth risks in major economies continue to tilt to the downside, upside factors have also emerged that may offset current and future challenges,” OPEC said in the report.
“A resolution of the geopolitical conflict in Eastern Europe and the relaxation of China’s ‘zero contagion’ policy could offer some upside potential,” the report states in another section.
While keeping annual demand growth forecasts unchanged, OPEC cut absolute demand forecasts in the fourth quarter of 2022 and the first quarter of 2023. Chinese demand, affected by the containment measures of COVID-19, has contracted in 2022, according to OPEC.
The report also showed that OPEC production fell in November after the broader OPEC+ alliance promised sharp production cuts to support the market against a backdrop of worsening economic prospects and weakening prices.
OPEC indicated that its oil production in November fell by 744,000 bpd, up 28.83 million bpd. (Spanish edition by Tomás Cobos)
Source: Ambito
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