OPEC: Global Oil Demand to Rise in 2023

The Organization of the Petroleum Exporting Countries (OPEC) has maintained its forecast for global oil demand growth in 2023, showing little change for the fourth consecutive month. In its monthly report, it stated that "global oil demand will increase by 2.35 million barrels per day or 2.4 percent in 2023." The organization warned that "the global economy is facing increasing uncertainty with a slowdown in growth in the second half of the year." It noted a decrease in its oil production by 464,000 barrels per day in May due to voluntary production cuts pledged by Saudi Arabia and other member countries. In reference to Ukraine, it stated, "It is still unclear how and when a possible resolution to the geopolitical conflict in Eastern Europe will occur." OPEC expects Chinese oil demand to rise currently by 840,000 barrels per day, up from 800,000 barrels per day in last month's forecast, which enhances recovery following the lifting of strict COVID-19 containment measures. OPEC mentioned that potential factors for demand growth, apart from falling inflation, include a stronger-than-expected economic recovery in China and the ability of the United States to maintain momentum achieved in the first half of the year.