OPEC sees oil demand growth at 2.4 million b/d in 2023

The Vienna-headquartered group has kept its global oil demand outlook for 2023 and 2024 unchanged from the previous month’s projections.

PHOTO: Oil barrels in the colour of flags of OPEC member countries on a world political map in the background. Getty Images

In its flagship monthly oil market report, the Organization of the Petroleum Exporting Countries (OPEC) said that it sees global oil demand to grow by 2.2 million b/d in 2024, with non-OECD countries and some nations in the Middle East and Asia contributing the largest share of demand growth.

Oil demand in 2023 in the OECD region is projected to rise by 74,000 b/d, to an average of 46.0 million b/d, while in the non-OECD region it is expected to increase by 2.4 million b/d, to average 56.0 million b/d, OPEC said.

Meanwhile, the group has revised down its demand forecast for OPEC crude in 2023 by 100,000 b/d to 29.3 million b/d. Demand for OPEC crude is expected to reach 30.1 million b/d in 2024, a decrease of 100,000 b/d from the previous month’s assessment, the group said.

Demand growth in non-OECD countries will continue to drive global oil demand in 2023 and 2024, OPEC said in the report. Domestic and international travel during the summer driving season will also be an additional factor boosting demand growth, it further argued.

Supply projections:

OPEC expects the non-OPEC liquid fuels supply to grow by 1.5 million b/d in 2023, an increase of 100,000 b/d from the previous assessment.

“The main drivers of liquids supply growth for 2023 are expected to be the US, Brazil, Norway, Kazakhstan Guyana, and China, while the largest decline is expected from Russia,” said the group.

The core 13 OPEC member countries produced 27.31 million b/d of crude oil in July, a decrease of 836,000 b/d from the previous month.

By Aparupa Mazumder 

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