OPEC expects an increase in global oil demand by 2.32 million b/d in 2023

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report on Tuesday that global oil demand will rise this year by 2.32 million barrels per day, or 2.3 percent.

And increased expectations by one hundred thousand barrels per day compared to the expectations of the organization last month.

OPEC raised its forecast for global oil demand growth in 2023 in its first upward revision in months, citing China’s easing of anti-COVID-19 restrictions and a slightly stronger outlook for the global economy.

OPEC said in the report that the key to oil demand growth in 2023 will be China’s recovery from imposed travel restrictions and the impact on the country, the region and the world.

She indicated that the concern is related to the depth and pace of economic recovery in China and the consequent impact on oil demand.

OPEC seemed optimistic about the global economic prospects as it raised its forecast for demand growth in 2023. But it also said that the relative slowdown was still evident, indicating rising inflation and expectations of more rate hikes.

The report also showed that OPEC’s crude oil production fell in January after the broader OPEC+ alliance pledged to cut production to support the market. Production fell in Saudi Arabia, Iraq and Iran, offsetting increases in other countries.

OPEC said its January crude oil production fell by 49,000 bpd to 28.88 million bpd.