In its latest monthly report, OPEC stuck to its forecasts for robust global oil demand growth in 2022 and 2023, citing signs that major economies were faring better than expected despite global headwinds such as surging inflation, Reuters reports.
OPEC said that oil demand will increase by 3.1 million barrels per day (bpd) in 2022 and by 2.7 million bpd in 2023, figures that remained unchanged from last month.
Prince Abdulaziz bin Salman.
“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,” OPEC said in Tuesday’s report. OPEC said it expects world oil consumption in 2023 to average 102.73 million bpd, above the pre-pandemic rate during 2019.
OPEC+ has been ramping up oil output as they look to unwind record cuts put in place in 2020 after the pandemic slashed demand.
Last week, OPEC+ decided to cut production targets by about 100,000 barrels per day from October, surprising analysts, as oil’s price continued to fall throughout the month of August. The cut reversed the same increase in production from a month earlier.
The next OPEC+ meeting is scheduled for Oct. 5.
