The Organization of the Petroleum Exporting Countries (OPEC) indicated on Thursday the risks of a decline in oil demand during the summer, partly due to the sudden production cuts announced by OPEC+ producers on April 2, even though the organization maintained its expectations for global oil demand growth in 2023.
OPEC stated in a monthly report that the demand will rise by 2.32 million barrels per day or 2.3 percent, unchanged from last month's projections. In discussing summer market forecasts, OPEC noted that the usual increase in seasonal demand in the United States could be affected by any economic weakness due to rising interest rates, and that the reopening in China has not yet halted the decline in global refinery consumption of crude oil.
OPEC added, "It is worth noting that potential challenges to global economic development include rising inflation, monetary tightening, stability of financial markets, and high levels of sovereign, corporate, and private debt." It further stated, "The recent impact of reopening in China is still insufficient to stop the downward trend in refinery consumption globally."
