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(OPEC) expects an increase in global demand for oil this year by 800 thousand barrels

14-02-2023

Today, Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) expected an increase in global demand for its crudes this year by 800 thousand barrels per day compared to 2022. (OPEC) In its report for the month of February, the increase in oil demand in 2023 was revised by 200,000 barrels per day from the previous assessment to stand at 29.4 million barrels per day. The report added that the need for (OPEC) crude in 2022 remained unchanged from the evaluation of the previous month at 28.6 million barrels per day, which is about 500,000 barrels per day higher than in 2021. It stated that the global oil demand growth expectations for the year 2022 remained unchanged. A change from last month’s estimates at 2.5 million barrels per day, compared to a slight adjustment to the expectations of global oil demand growth for the year 2023 by 100,000 barrels per day, to settle at 2.3 million barrels per day. On global oil supplies, the report indicated that estimates recorded a growth in the oil supply from outside (OPEC) by 1.9 million barrels per day in 2022. According to the report, the growth of non-OPEC oil production for the year 2023 was revised down slightly by 100,000 barrels per day, as it is expected to grow by 1.4 million barrels per day. It is expected that the United States, Norway, Brazil, Canada, Kazakhstan, and Guyana will be the main drivers of growth in oil supply from outside (OPEC). In contrast, declines are expected in Russia and Mexico, indicating that there are still significant doubts about the impact of the ongoing geopolitical developments and US shale oil production in 2023. On global economic growth, growth forecasts for 2022 were revised slightly to 3.1 percent, given the better-than-expected financial performance in various significant economies in the second half of the year. The report stated that global economic growth forecasts for 2023 were revised slightly up to 2.6 percent, with some momentum continuing in the second half of 2023 (3.1 percent for 2022). He explained that for the United States, economic growth expectations were revised to reach 2.1 percent for 2022 and 1.2 percent for 2023, while the economic growth in the euro area was adjusted to 3.5 percent for 2022 and 0.8 percent for 2023. He pointed out that China's economic growth for 2022 was about 3 percent, with expectations that it would reach 5.2 percent in 2023. He believed the current economic momentum provides a reasonable basis for economic growth this year. However, a slowdown in the dynamism for this year is still likely, with inflation remaining high and a further rise in key interest rates, especially in the euro area. He expected the global economy to continue to face many challenges, including high levels of sovereign debt in many regions and geopolitical developments.