OPEC updates its 2023 prediction for China-led oil demand growth
For the first time in months, OPEC increased its 2023 forecast for the growth of the world’s oil demand, citing China’s relaxation of COVID-19 restrictions and slightly more optimistic predictions for the global economy.
According to a monthly report released by the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday, the world’s oil demand will increase by 2.32 million barrels per day (bpd) or 2.3% this year. The projection exceeded the forecast from the previous month by 100,000 bpd.
Oil prices, which have been largely stable since the end of last year and are currently trading at just under $86 per barrel, may be supported by increased demand. Following a string of downgrades, OPEC had maintained its 2023 demand growth forecast at the same level for the previous two months.
According to the report, China’s removal of its mandated mobility restrictions and the impact this will have on the nation, the region, and the world, will be ‘key to oil demand growth in 2023.’
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