The Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report on Thursday (April 13) that both the 2023 and 2022 world oil demand growth projections remained unchanged at 2.3 million barrels per day (bpd) and 2.5 million bpd respectively.
“There are minor downward adjustments reflecting the latest developments in the OECD region, primarily in OECD Americas and OECD Europe. However, the stronger-than-expected demand seen in non-OECD in January and February necessitated some upward revisions,” OPEC explained in the report, referring to the Organisation for Economic Co-operation and Development.
In the OECD, oil demand is expected to rise 100,000 bpd this year, while in the non-OECD, the figure is forecast to jump by 2.2 million bpd.
Oil weakened after the report was released with Brent crude, the international benchmark, falling below $87 a barrel.
Earlier this month, OPEC+, which comprises the Organisation of Petroleum Exporting Countries (Opec) and allied producers led by Russia, announced that they would cut output, in a surprise move. The Group of oil producing nations said the cut of 1.15m barrels a day is aimed at supporting market stability.
The cuts will start next month and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by Saudi state-run news agency SPA. The reductions are on top of those announced by OPEC+ in October, according to SPA.
Last October, OPEC+ had agreed to an output cut of 2 million bpd from November until the end of the year, a move that angered Washington as tighter supply boosts oil prices.
OPEC left its 2023 world economic growth forecast at 2.6% and cited potential downside risks.
“It should be noted that potential challenges to global economic development include high inflation, monetary tightening, stability of financial markets and high sovereign, corporate and private debt levels,” OPEC said.
Still, it said the spillover from U.S. bank failures in March had had a limited economic impact.
With reporting by Reuters, Argus Media, Oilprice.com
