OPEC sees oil demand growth at 2.4 million b/d in 2H 2023
The Vienna-headquartered group has revised its global oil demand outlook for 2023 by an additional 100,000 b/d as it expects higher demand in China in the second half.
PHOTO: Oil barrels and a pump jack against the OPEC flag. Getty Images
In its flagship monthly oil market report, the Organization of Petroleum Exporting Countries (OPEC) said that it sees the world’s oil demand continue to grow sharply into next year, and add 2.2 million b/d for a total of 104.25 million b/d in 2024.
Non-OECD countries, and especially China, India, and Latin American, African and Middle Eastern countries, will contribute the most to the demand growth with about 2 million b/d to be added next year, the oil producer group says.
“The OECD is anticipated to expand by 260,000 b/d, with OECD Americas contributing the largest increase,” it says.
Demand for OPEC crude oil is projected at 29.4 million b/d this year, an increase of 100,000 b/d from the previous month’s assessment and around 1 million b/d higher than in 2022, said the group. Demand for OPEC crude is expected to reach 30.2 million b/d in 2024.
A firm growth in non-OECD demand and a continued rebound in China’s economic activity after easing all pandemic-related restrictions will drive global oil demand, argues OPEC. A surge in domestic travel and the summer driving season will boost US oil demand, according to the oil producer group.
Supply projections:
OPEC estimates non-OPEC liquids supply to grow by 1.4 million b/d in 2023, to average 67.2 million b/d, broadly unchanged from last month’s estimates.
The group expects the key drivers of supply growth for 2023 to be the US, Brazil, Norway, Canada, Kazakhstan and Guyana. “Decline is expected mainly in Russia,” OPEC says.
The core 13 OPEC member countries produced 28.19 million b/d in June, an increase of 91,000 b/d from May, according to available secondary sources.
By Aparupa Mazumder
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