The world’s oil demand is expected to climb by more than expected in 2023, according to OPEC, which boosted its prediction in its first upward revision in months. The organization cited China’s relaxation of COVID-19 limitations and slightly better expectations for the global economy. The Organization of the Petroleum Exporting Countries (OPEC) predicted on Tuesday that this year’s increase in global oil consumption will be 2.32 million barrels per day (bpd).
Compared to the forecast from the previous month, the projection was 100,000 bpd higher. According to the research, China’s removal of its required mobility restrictions and the impact this will have on the nation, the region, and the world will be “key to oil demand growth in 2023.” Concern lingers regarding the country’s economic recovery’s depth and speed as well as how that would affect oil consumption.
OPEC increased its projection for growth in 2023 because it was optimistic about the future of the world economy. However, it also noted that there was still some evidence of a slowdown, citing high inflation and anticipated future increases in interest rates.
The report also revealed that OPEC’s crude oil output decreased in January as a result of the broader OPEC+ alliance’s commitment to restrict supply in order to stabilize the market. Production fell in Saudi Arabia, Iraq, and Iran while rising elsewhere. OPEC reported a 49,000 bpd drop in crude oil production in January to 28.88 million bpd.