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Global oil demand to rise with support from China: IEA

IEA expects Chinese oil demand to quickly pick up steam, exceeding 2021 levels by end of year

Sibel Morrow  | 15.02.2023 - Update : 15.02.2023
Global oil demand to rise with support from China: IEA


The International Energy Agency (IEA) on Wednesday estimated that global oil demand would increase by 200,000 barrels per day (bpd) in 2023.

Global oil demand is set to rise by 1.96 million barrels per day (bpd) this year to a record 101.9 million bpd, the IEA said in its monthly oil market report.

The estimated increase will be dominated by China's growth forecast of around 900,000 bpd.

"Following Beijing’s late-2022 about-turn on its stringent anti-COVID restrictions, we expect Chinese oil demand to quickly pick up steam and comfortably exceed 2021 levels by the end of the year," the agency said.

Demand in OECD countries is estimated to stand at 46.39 million bpd, up 390,000 bpd from the previous year, and 55.53 million bpd in non-OECD nations, up by 1.57 million bpd.

OPEC+ production decreases

Last month, global oil supply remained largely stable, rising by only 10,000 bpd month on month to 100.8 million bpd.

The IEA's monthly oil market report shows that OPEC crude oil production averaged 29.6 million bpd in January, marking a decrease of about 40,000 bpd month on month.

"We anticipate further declines in OPEC+ crude supply this month, led by Russia as the EU embargo on its products takes effect. Output in Angola, Iraq, and Kazakhstan is expected to decline due to maintenance," the agency said.

Meanwhile, non-OPEC supply decreased by nearly 10,000 bpd compared to the previous month to reach 66.38 bpd.

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