Commodities Buzz: IEA Says World Oil Demand Growth Will Slow To 1.6 Million Barrels Per Day In 2023

15 Nov 2022 , 03:19 PM

The International Energy Agency or IEA stated in a latest monthly update that world oil demand growth will slow to 1.6 mb/d in 2023, down from 2.1 mb/d this year, as mounting economic headwinds impede gains. The GDP outlook has worsened and 4Q22 global oil use will contract (-240 kb/d) compared with last year. China’s persistently weak economy, Europe’s energy crisis, burgeoning product cracks and the strong US dollar are all weighing heavily on consumption. World oil supply rose 410 kb/d in October to 101.7 mb/d but is forecast to fall by 1 mb/d for the remainder of the year as OPEC+ cuts and an EU ban on Russian crude come into effect. Annual growth of 4.6 mb/d this year is set to boost global production to 99.9 mb/d. Modest gains of just 740 kb/d in 2023 will push supply to 100.7 mb/d. Global refinery throughputs in October fell by 500 kb/d m-o-m to 80.4 mb/d, with a 1.1 mb/d decline in the Atlantic Basin partly offset by higher runs East of Suez. New refinery capacity coming online will go some way to offset potential losses from Russia. Refinery runs are forecast to increase by 2.3 mb/d in 2022 and 1.4 mb/d next year. Diesel cracks surged to new records, keeping margins at elevated levels.Powered by Commodity Insights