Global oil demand is expected to increase in 2023, but at a lower rate than this year. The demand for black gold will be significantly affected by developments in China, whose economy is slowing down due to repeated anti-government restrictions.
Global demand will increase
According to the current estimate of the Organisation of the Petroleum Exporting Countries (OPEC), global oil demand will increase by an average of 2.7 million barrels per day next year. For this year, this growth is expected to be around 3.4 million barrels and OPEC is keeping it unchanged for now.
“In 2023, we expect oil demand to be boosted by healthy economic growth, combined with improving geopolitical developments and success in combating the epidemic of covid in China,” OPEC said in its latest report.
OPEC is more optimistic
OPEC forecasts a more optimistic oil demand trend for next year than the International Energy Agency (IEA). Among other things, OPEC is basing its forecast on the assumption that the war in Ukraine will not escalate further in 2023, thus not fuelling inflation and causing a slowdown in global economic growth. OPEC expects this to be around 3.2 per cent.
