Energy Preview: Crude Oil Demand In 2023 Expected To Be Supported By solid economic performance In Major Consuming Countries Says OPEC

14 Sep 2022 , 08:40 AM

OPEC noted in a monthly report that world oil demand growth in 2022 remained unchanged from the previous month’s assessment at a healthy level of 3.1 mb/d. This includes the recently observed trend for additional oil demand growth due to fuel switching in power generation. Oil demand in the OECD is estimated to grow by 1.6 mb/d in 2022, while non-OECD growth is expected at 1.5 mb/d. The second quarter of 2022 is revised higher amid better-than-anticipated oil demand in the main OECD consuming countries, while the 3Q22 and 4Q22 have seen offsetting revisions. For 2023, the forecast for world oil demand growth also remained unchanged from the previous month’s assessment to 2.7 mb/d. The OECD is expected to grow by 0.6 mb/d and the non-OECD by 2.1 mb/d. Oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in COVID-19 restrictions and reduced geopolitical uncertainties. World Oil Supply Non-OPEC liquids supply growth in 2022 remained broadly unchanged from last month’s assessment at 2.1 mb/d. A downward revision in Other Eurasia and OECD Americas was offset by an upward revision in Latin America and Other Asia. The main drivers of liquids supply growth for 2022 are expected to be the US, Canada, China, Brazil and Guyana, while the main production declines are expected in Indonesia and Norway. In 2023, the forecast for non-OPEC liquids production growth remained unchanged from last month’s assessment of 1.7 mb/d.Powered by Commodity Insights