OPEC revises up world oil demand growth for 2023

ISTANBUL

The Organization of Petroleum Exporting Countries (OPEC) revised up global oil demand growth for 2023.

According to OPEC's most recent monthly oil market report, published Tuesday, oil demand will increase by 2.32 million barrels per day (bpd) in 2023 to reach 101.87 million bpd, with some minor upward adjustments due to China's expected better performance following its reopening from COVID-19 restrictions.

In the first quarter of 2023, world oil demand is forecast to rise by 1.9 million bpd year on year and grow even more in the following quarters.

Growth in the OECD is projected at 350,000 bpd to reach 46.47 million bpd, while growth in non-OECD countries is expected to climb 1.96 million bpd to 55.4 million bpd.

However, OPEC warned that "this forecast is subject to many uncertainties, including global economic activity, a possible shift in China's COVID-19 policy, and ongoing geopolitical developments."

Global oil supply increases in January

Global oil supply in January increased by around 600,000 bpd month over month, averaging 101.7 million bpd. This marks a 3.3 million bpd increase over the previous year.

OPEC's crude oil production averaged 28.88 million bpd in January, a month-on-month decrease of 49,000 bpd. During this period, crude oil production in OPEC increased the most in Nigeria, Angola and Kuwait, while production in Saudi Arabia, Iraq and Iran declined.

The share of OPEC crude oil out of total global production decreased by 0.2 percentage points to 28.4% in January compared to the previous month.