OPEC expects global oil demand to grow further next year, but at a slightly slower pace than in 2022, as consumption is supported by better containment of the COVID-19 pandemic and still global economic growth. robust.

In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) said it expects global oil demand to increase by 2.7 million barrels per day (bpd) in 2023. The forecast growth this year remained unchanged at 3.36 million bpd.

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Oil consumption rebounded from the pandemic-induced crisis in 2020 and is expected to surpass 2019 levels this year, even as prices hit record highs. However, high crude prices and Chinese coronavirus outbreaks have eroded growth projections for 2022.

“In 2023, expectations of healthy global economic growth amid improving geopolitical developments, combined with expected improvements in China’s COVID-19 containment, are expected to drive oil consumption,” the statement said. OPEC in the report.

OPEC said its forecast for 2023 assumed there would be no escalation of the war in Ukraine and that risks such as rising inflation would not weigh heavily on global economic growth.

The group and its allies including Russia, known collectively as OPEC+, are ramping up production after record cuts put in place as the pandemic took hold in 2020.

In recent months, OPEC+ has underestimated targeted production increases due to underinvestment in oil fields by some OPEC members and Russian production losses.

The report showed OPEC output bucked that trend in June, rising 234,000 bpd to 28.72 million bpd.

© 2022 Reuters