COVID management, economic growth to support crude demand in 2023: OPEC
Jul 13, 2022
New Delhi [India], July 13 : Better-than-expected containment of COVID-19 and expected firm economic growth are projected to support global demand for crude oil in 2023, the Organization of the Petroleum Exporting Countries (OPEC) said in its latest oil market report.
The demand for crude oil is likely to grow by 2.7 million barrels per day in 2023.
"Within the regions, OECD oil demand is forecast to rise by 0.6 mb/d and non-OECD oil demand is projected to show an increase of 2.1 mb/d, mostly in China and India. This is supported by a recovery in transportation fuels and firm industrial fuels demand, including petrochemical feedstock," the report said.
Category-wise, gasoline and diesel are expected to lead oil demand growth in 2023, on increasing mobility in major consuming countries, such as the US, China, and India.
Both on-road diesel, including trucking, as well as increasing industrial, construction, and agricultural activities in OECD America, Europe, and China will support diesel demand.
"Jet fuel will continue to recover, as domestic and international air travel pick up, but business travel is expected to continue to lag. Uncertainties remain, including COVID-19-related challenges, particularly in China, as well as geopolitical uncertainties and their impact on oil demand," the report said.
Looking ahead to 2023, strong global demand for oil, along with the increase in non-OPEC supply, are forecast to lead to demand for OPEC crude to increase by 0.9 million barrels per day year-on-year to average 30.1 million per day.
"Nevertheless, uncertainty to the forecast remains to the downside, with much depending on the course of the pandemic and related measures, global financial tightening in the light of growing inflation, and the resolution of the ongoing geopolitical issues in Eastern Europe."
